Monday, January 11, 2010

Canada Home Renovation Tax Credit - Making the most of it.

It's that time of year, when I'm rifling through my pockets, purses, drawers and files looking for every last receipt. This year, I'm making sure I set aside a stack that I can use towards the Home Renovation Tax Credit. I wanted to check what I could include towards it, and it was surprisingly more than I had realized.
Canadian homeowners can get up to $1,350 in tax credits for home renovations made between January 27, 2009 and February 1, 2010 (so you have two and a half weeks if you haven't done your home renovations yet).
The HRTC allows families to claim 15 per cent of home improvement expenses, between $1,000 and $10,000, on their 2009 income tax return. This gives families up to $1,350in nonrefundable tax credits, which reduce the total amount of income tax they must pay.

Here's a list of eligible expenses from the Canada Revenue Agency website:

• Renovating a kitchen, bathroom, or basement
• Windows and doors
• New flooring - carpet, linoleum, hardwood, floating laminate, etc.
• New furnace, woodstove, boiler, fireplace, water softener, water heater, or oil tank
• Permanent home ventilation systems
• Central air conditioner
• Permanent reverse osmosis systems
• Septic systems
• Wells
• Electrical wiring in the home (e.g., changing from 100 amp to 200 amp service)
• Home security system (monthly fees do not qualify)
• Solar panels and solar panel trackers
• Painting the interior or exterior of a house
• Building an addition, garage, deck, garden/storage shed, or fence
• Re-shingling a roof
• A new driveway or resurfacing a driveway
• Exterior shutters and awnings
• Permanent swimming pools (in ground and above ground)
• Permanent hot tub and installation costs
• Pool liners
• Solar heaters and heat pumps for pools (does not include solar blankets)
• Landscaping: new sod, perennial shrubs and flowers, trees, large rocks, permanent garden lighting, permanent water fountain, permanent ponds, large permanent garden ornaments
• Retaining wall
• Associated costs such as installation, building plans, permits, professional services, equipment rentals, and incidental expenses
• Fixtures - blinds, shades, shutters, lights, ceiling fans, etc.

I'm going home to add up my receipts and see if I need to complete any more home renovations in the next few weeks, might be a busy month on Gabriola. (Submitted by: Tina Lynch)

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