Many people have been phoning and asking us about how best to take advantage of the Home Renovation Tax Credit. Many people don’t know how to take full advantage of this…and time is running out.
HRTC is a non-refundable tax credit based on allowable expenses for work done, or renovation items purchased after January 27, 2009, and before February 1, 2010. The HRTC is claimed when filing your 2009 taxes and can only be claimed for renovations and alterations that add to the value to your home or apartment / condo.
The 15% non-refundable tax credit can be claimed on eligible expenses of more than $1,000 but not more than $10,000. The maximum tax credit that can be claimed to reduce your federal income tax is $1,350.
Get your contracts in writing and keep your receipts. The cost of routine repairs and maintenance items that are not integral to your residence are not eligible…items such as gutters, sheds etc…not elligible. If you have questions on a particular item, please call.
Examples of eligible expenses and purchases are:
- Renovating a kitchen, bathroom, or basement
- New windows, doors, or flooring
- Building an addition, garage, deck, shed, or fence
- A new furnace, fireplace, water softener, or water heater
- A new driveway
- Re-shingling a roof
- Painting your house
- Swimming pools
- Costs associated with permits, professional services, equipment rentals, and incidental expenses associated with the list above.
These are just some of the qualifying purchases, as your Mortgage Professional I can show you how to best take advantage of all the home owner and tax saving strategies.