John Pasalis in Toronto Real Estate News
How Will it Work?
If the federal budget is passed, the temporary 15% tax credit would be claimed on up to $9,000 of eligible expenditures between January 27, 2009 and February 1, 2010. The credit would apply to the portion of eligible expenditures that exceeds $1,000 but does not exceed $10,000 up to a maximum credit of $1,350.
The credit can be claimed on more than one of an individual's eligible dwellings which generally includes any property used for personal use. The HRTC will be family-based and family members will be able to share the credit.
What's Eligible
The HRTC can be claimed on renovations and alterations to a dwelling or the land on which it sits that are enduring in nature. Home owners will be able to claim expenditures for large renovations like additions or finishing a basement as well expenses as basic as paint and sod. The credit will also apply to all costs associated with such projects including permits, professional services and equipment rentals.
Here's a summary of several eligible and ineligible expenses:
Real Life Examples
The budget included the following real life examples:
For all the details on Canada's Home Renovation Tax Credit please visit the Department of Finance website.
John Pasalis is a sales associate at Prudential Properties Plus in Toronto and a founder of Realosophy. Email John