Home Reno Tax Credit Tips for Homeowners

By Better Business Bureau


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Home renovations are smart investments in the long-term value of a home, and with the newly introduced Home Owners Tax Credit (HRTC) offered by the Federal government, now might be the right time to make some changes.

Your Better Business Bureau would like to provide some clarity about the HRTC and some smart tips for shoppers while they look around for contractors.

Firstly, the tax credit is based on a percentage of the total of work and not a lump sum amount. The total credit is 15 per cent, and may be claimed on the portion of eligible renovations over $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350.

The HRTC credit applies to eligible home renovation costs for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010. Therefore, consumers can only claim the HRTC tax credit when filing their 2009 tax return.

There are also specific types of work that can and cannot be applied to the HRTC. Here are some examples:

Eligible

* Kitchen, bathroom or basement renovations

* New carpet or hardwood floors

* Building an addition, deck, fence or retaining wall

* A new furnace or water heater

* Painting the interior or exterior of a house

* Resurfacing a driveway

* Laying new sod

Ineligible

* Furniture and appliances

* Purchase of tools

* Carpet cleaning

* Maintenance contracts (furnace cleaning, snow removal, lawn care, pool cleaning, etc.)

To learn more about the Home Renovation Tax Credit go to: www.budget.gc.ca

Avoid making hasty decisions, do your due diligence. Start with bbb.org to make sure you're dealing with a reputable contractor. You can request a quote from the BBB website to do your comparison-shopping.

Also, be sure to get a written contract and receipt for the project with the company's name, date, detailed description of the project and total costs.

Spend wisely and happy home renos!

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Comments

Showing 1 to 4 of 4 comments.

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Posted by hotels turkei | February 14, 2010 Report Violation

Here's some information about what is or isn't eligible for the tax credit, plus some contact information where you can find out more.

The HRTC will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009, and before February 1, 2010.
The 15-per-cent credit may be claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be
received is $1,350.

Examples of HRTC Eligible and Ineligible Expenditures:

ELIGIBLE
• Renovating a kitchen, bathroom or basement
• New carpet or hardwood floors
• Building an addition, deck, fence or retaining wall
• A new furnace or water heater
• Painting the interior or exterior of a house
• Resurfacing a driveway
• Laying new sod

INELIGIBLE
• Furniture and appliances (e.g., refrigerator, stove, couch)
• Purchase of tools
• Carpet cleaning
• Maintenance contracts (e.g., furnace cleaning, snow
removal, lawn care, pool cleaning)

Additional information on the HRTC is available on the Canada Revenue Agency's website at www.cra.gc.ca.
Information is also available at www.actionplan.gc.ca.

You may also want to contact the local CRD to see if there are any additional supports available. I know they give $100 credit if you buy a clothes washer that is on their list of efficient models. They may have other programs or credits that could help. Or at least point you in the right direction. Their website is: www.crd.bc.ca/water

Hope this helps. Barbara Risto, Publisher Senior Living magazine

Posted by Barbara | August 21, 2009 Report Violation

is there a special seniors thing if the house is old they can get free new water heater ect I heard someone talking about that Im asking for my mom

Posted by terri | July 29, 2009 Report Violation

I notice a new furnace and/or water heater qualifies for the tax credit. Is replacing a residential central air conditioning unit also eligible for the tax credit?

Posted by heather anderson | July 9, 2009 Report Violation

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