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Barry's
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March 20, 2009
The Home Renovation Tax Credit
During my recent travels around the riding, I have been asked many times about the Home Renovation Tax Credit (HRTC).
My guess is that the warm weather has people thinking of summer projects around the house. It could also be that the introduction of the HRTC has convinced many people with home improvements in mind to act now to take advantage of this federal income tax break.
The HRTC provides a 15% income tax credit on eligible home renovation expenditures for work performed or goods acquired after January 27, 2009 and before February 1, 2010. This means that every home owner is eligible for home improvements that will have a lasting impact.
The credit may be claimed on eligible expenditures exceeding $1,000, but no more than $10,000. The HRTC will be family-based, generally meaning an individual, and his/her spouse or common-law partner. Family members will also be able to share the credit amongst themselves, but the credit can not be applied to income properties.
Costs associated with such projects will be eligible for the HRTC, including permits, professional services, equipment rentals and incidental expenses.
Routine repairs and maintenance normally performed annually or on a more frequent basis will not qualify for the credit. Individuals will need to keep receipts for expenditures and may claim the HRTC when filing their income tax returns for 2009.
Some of the eligible expenditures include:
· renovating a kitchen, bathroom or basement;
· new carpet or hardwood floors;
· a new furnace or water heater, or;
· painting the interior or exterior of a house.
Some of the ineligible expenditures include:
· purchase of furniture and appliances;
· purchace of tools;
· carpet cleaning, or;
· maintenance contracts (e.g. furnace cleaning, snow removal, lawn care etc).
The HRTC will complement support provided by the Government to Canadians to undertake energy-saving improvements to their homes. EcoEnergy retrofit grants will not reduce the value of claims made under the HRTC. Eligible renovation expenditures claimed under the Medical Expense Tax Credit may also be claimed.
By keeping the rules governing this program as simple as possible, every Canadian home owner will be able to take advantage of this stimulus package and help to get our economy back on track.
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