Home Reno Tax Credit

The Home Renovation Tax Credit is only available until February 1, 2010.

Right across Canada, home owners and cottage owners are renovating to meet this deadline.

Why this credit?  Curb the underground economy, generate legitimate economic recovery, keep people at home this summer with the threat of a pandemic flu?... all good reasons

 

YouTube Contest
Legislation Proposed Sep 14 2009
Press Release September 14, 2009
Explanatory Notes
Notice of Ways & Means Motion
Historical Background
Canada's Economic Action Plan
Budget plan and reasons
Federal Budget February 2009
CanRev 20 questions on HRTC
CanRev July 13, 2009 News Release
CanRev Fact Sheet
Action Plan Gov't of Canada
Ignatief favors HRTC
What Qualifies?
Eligible and Ineligible Expenditures

Finance was inundated with requests for more specific information and issued opinions on September 9th 2009 about new docks, outdoor sauna buildings, solar panels, replacing siding and softits and facia, air conditioners, custom draperies, co-op housing, home security systems, landscaping, wireless broadband towers... most qualify if they are of enduring nature and meet the criteria.   CRA has since pulled this list off their website, but if you needed it, you could probably call and ask them for it.

Home Offices
Home offices reduce your HRTC claim

Allocate your expenditures between personal use property and home office or rental suite - only the personal use portion qualifies for the HRTC, but the business portion may qualify for special expense rules if the renovation also qualifes for medical reasons for business accommodation of persons with disabilities

Medical Expense Tax Credit
Income Tax Act S. 118.2(2)(l.2) and (l.21)

(l.2) for reasonable expenses relating to renovations or alterations to a dwelling of the patient who lacks normal physical development or has a severe and prolonged mobility impairment, to enable the patient to gain access to, or to be mobile or functional within, the dwelling, provided that such expenses

(i) are not of a type that would typically be expected to increase the value of the dwelling, and

(ii) are of a type that would not normally be incurred by persons who have normal physical development or who do not have a severe and prolonged mobility impairment;

 

(l.21) for reasonable expenses relating to the construction of the principal place of residence of the patient who lacks normal physical development or has a severe and prolonged mobility impairment, that can reasonably be considered to be incremental costs incurred to enable the patient to gain access to, or to be mobile or functional within, the patient’s principal place of residence, provided that such expenses

(i) are not of a type that would typically be expected to increase the value of the dwelling, and

(ii) are of a type that would not normally be incurred by persons who have normal physical development or who do not have a severe and prolonged mobility impairment;

Article on Medical Expenses and Renovations
ACB of personal use property
Adjusted Cost Base

Make sure you keep renovation receipts for personal use property as well as business use property.  Those costs are added to your Adjusted Cost Base and reduce your capital gains on sale of the property, or on deemed disposition at date of death.

Other programs
CHMC programs and financial assistance

Financial assistance for homeowners and multi-unit projects is available but requires pre-approval


CMHC grants for assistive devices and for building garden suites

EcoAction
ecoENERGY $5,000 grants
Home Buyer's Plan

Buy or build a qualifying home for yourself or for a related person with a disability, maximum per person withdrawal is $25,000 for 2009 and subsequent years

Insurance Bureau of Canada

Ensure your renovations have been included in your insurance policy or your policy may not be honored.

Quebec

For more info: http://www.taxtips.ca/qctax/personaltaxcredits.htm#QCHRTC

TaxTips summary




 

 

 

 
 
 
 
 
 
 
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