The Federal Tax Credits Blog

Posts Tagged ‘renovation’

Question: What do I have to keep/show for Home Renovation Credit for my taxes?

I’m reno-ing a basement and know that this qualifies for the Home Renovation Tax Credit. I’m jsut wondering what do I have to keep so that I’m not scrambling next tax season. Thanks in advance

Answer: Other than keeping all your receipts for your renovations, make sure that the people that are doing work for you, have a GST number or their work won’t qualify for your tax credit. The auditors will really look at all the expenses, so make sure you have qualified people.

Your tax questions answered: Home

Late last year you caught a break. Congress reached a deal that extended the Bush-era tax cuts for two years and renewed perks like the sales tax deduction and the tuition write-off for non-itemizers.

Prince George residents respond to renovation tax credit

Question: does getting your drive way paved count for the home renovation tax credit?

I want to get my drive way paved and want to know if that counts for a tax credit refund of up to $1300 in Ontario?

Answer: Im not sure, but remember there is 1000 deductible, so you can only claim 300

Guelph Area Event Calendar

Here is a list of things to see and do in the region.

Phasing out government stimulus – Deloitte Canada

Hardwoods Distribution Income Fund Announces 2009 Fourth Quarter and Year-End Results

Hardwoods Distribution Income Fund today reported financial results for the three months and 12 months ended December 31, 2009. The Fund’s results are based on the performance of Hardwoods Specialty Products LP and Hardwoods Specialty Products USLP – one of North America’s largest wholesale distributors of hardwood lumber and related sheet good products.

Davos Annual Meeting 2010 – A Roadmap for a Sustainable Recovery

Question: Home Renovation Tax Credit?

Who can take advantage of new HRTC? What is the deadline? If I live in a condo am I still eligible?

Answer: Even if live in a condo, you can take advantage of HRTC. Ask your menagement for a receipt. You are paying a maintenance fees every month and part of this goes to some improvements and renovations of the building.

In response to jlf:

The credit can be claimed on eligible expenditures incurred on one or more of an individual’s eligible dwellings. Properties eligible for the HRTC include houses, cottages and condominium units that are owned for personal use.
Eligible
•Renovating a kitchen, bathroom, or basement
•New carpet or hardwood floors
•Building an addition, deck, fence or retaining wall
•A new furnace or water heater
•Painting the interior or exterior of a house
•Resurfacing a driveway
•Laying new sod

The home renovation tax credit in the Jan. 27 budget applies to condominiums and even to eligible work undertaken by condo corporations.
In a typical condo arrangement, each condo-unit owner pays a monthly maintenance fee, which typically goes into the condo corporation’s general or reserve fund, from which the condo corporation would pay contractors’ renovation bills on behalf of the unit owners.
However, the credit is only available to individuals, not corporations, so, the condo corporation is not entitled to the credit. Instead, the draft legislation provides that a condo owner can claim the credit for qualifying renovations made on his or her own unit, as well as for his or her share of renovations of the common areas made by the condo corporation.
Check the CRA website for the documentation requirements to support claims for renovations made to the common areas of a condo building.

Track spending to avoid being house poor

Mounting debts and unfinished projects are par for the course these days and HGTV’s new House Poor (Mondays, 9 p.m.) is taking a cue from the times to help homeowners revamp their finances and complete necessary renovations.

Holmes Inspection Intro Theme Episode

There are a lot of great reasons for Canadians to buy right now. Low home prices and interest rates are the most obvious ones, but did you know about the First Time Home Buyers Tax Credit and the increase in the withdrawal ceiling on the RRSP Home Buyers Plan? The 2009 federal budget is making home ownership easier than ever.

Home prices and interest rates are dropping in most Canadian cities, making it a great time to buy from a basic financial standpoint – if you can own instead of rent for a comparable amount of money, why not? Lower home prices mean that you have more options and more buying power.

Interest rates have dropped along with home prices. Interest rates are what really determine what your home payment will be. Right now, you can get an interest rate for below 5%. This can bring your mortgage payment down hundreds of dollars a month.

The 2009 federal budget allows you to make more money tax-free. The tax free amount used to be $9,600; now it’s $10,320. The ceiling on the first two tax brackets has also risen. An income of up to $40,726 is only taxed 15%. The next bracket of 22% income taxation applies to incomes of up to $81,452.

Right now, the government is offering tax credit towards home renovation from $1000-10000, which ends up being around 15% cash back when you tally up your savings. Buy that fixer-upper and put some work into it, knowing that a good chunk will come back to you in tax savings.

The best deals by far come to the first time home buyers. The Canadian government has increased the amount that one can take from their Registered Retirement Savings Plan (RRSP) from $20,000 to $25,000. This is via the RRSP Home Buyers Plan (HBP). The bonus with using your RRSP is that while you have to pay back the money, you have 15 years to do so.

Canadians have a lot of great reasons to buy in the 2009-2010 season. Low rates, low prices and tax breaks are making Canada a great place to invest in real estate. If you’re a first time home buyer, the advantages are increased with the HBP. Prices will eventually start to climb again and those who have bought homes now will benefit from increases to equity as well as any improvements they have made.

HST taps consumers

On Thursday, July 1, the provincial government’s Harmonized Sales Tax (HST) will come into effect amid controversy, opposing viewpoints and predictions on either the fall of the Liberal government or a new era for the economy of BC.

Michael Ignatieff Vancouver Press Conference