The Home Renovation Tax Credit
The 2009 budget has temporarily implemented the Home Renovation Tax Credit (HRTC) to encourage stimulus in the housing stock in Canada. The HRTC will be eligible for home renovations starting from January 27, 2009 until February 1, 2010. The tax credit is a 15% claim on expenditures from $1,000 to $10,000. The maximum tax credit that can be refunded is $1,350.
Properties eligible for the tax credit are houses, cottages and condominiums. Examples of eligible expenditures are listed below:
§ Kitchen, bathroom or basement renovations
§ Deck, fence or retaining wall
§ Painting exterior and interior of the house
§ A new furnace or water heater
§ New carpet or hardwood floors
§ Resurfacing a driveway
§ Laying new sod
Ineligible costs that can be claimed are expenses such as furniture and appliances, carpet cleaning, snow removal, lawn care and other maintenance contracts.
Taxpayers can claim the HRTC on their 2009 tax return.
As it is impossible to include all situations, circumstances and exceptions, contact Dustin for a further review or for further explanation. Every effort has been made to ensure the accuracy of the information. However, because of the nature of the subject, no person or firm involved in the preparation or distribution of this commentary accepts any liability for its contents or use.