Home renovation tax credit . . . WOW!
Great news! The home renovation tax credit announced via the new budget is going to make it happen. We're finally going to complete out renovation! I do hope we can find contractors that will be able to schedule us into their work line-up.
If I am correct, (and someone please correct me if I'm wrong), tax credits are exactly that . . . they are considered as tax paid. Because of that, do your calculations. Watch out for the fact that this tax credit cannot produce a tax refund like RRSP or Charitable donations can. So, if you intend to take advantage of this, make sure you are in an 'owe' tax position or you may be turned down. That wouldn't be a nice thing . . . it could take the glow off the renovation real quick.
Of course, if you have been thinking of placing your property on the market but it could use some sprucing up, what an opportune time to do so. It doesn't seem to apply to investment property as well but it can to a second residence like a cottage or condo . . . check with your accountant. It will return dividends when it's ready for sale as well so it's a win / win and you're on both sides of the win!
This is a great stimulus to the economy and it will have a huge ripple effect on suppliers, manufacturer's, trades people, financial institutions . . . and the list goes on.
Have a great year!
Posted by Len Visser
on February 14, 2009