I know I am saving receipts! I want to be sure to take advantage of the this year's renovation tax incentive. My husband and I are thinking about finishing the basement - we now have 2 teenagers and a seven year old so everyone needs their own space - but that might not happen this year. I still want to claim what I can so am saving receipts for things like our new kitchen tap, a new light in our en suite and paint for Ryan's room. My friends and neighbours are doing the same. One neighbour told me she can claim her perennials. I can't seem to verify this! Unfortunately appliances and furniture do not qualify. Here is a summary of the plan from
Temporary, Timely and Targeted Stimulus
The HRTC will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009. The temporary nature of the credit will provide an immediate incentive for Canadians to undertake new renovations or accelerate planned projects. The HRTC can be claimed for renovations and enduring alterations to a dwelling, or the land on which it sits.
How the HRTC Will Work
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.
The Home Renovation Tax Credit The credit can be claimed on eligible expenditures incurred on one or more of an individual's eligible dwellings.
Properties eligible for the HRTC include houses, cottages and condominium units that are owned for personal use. Renovation costs for projects such as finishing a basement or re-modeling a kitchen will be eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals and incidental expenses. Routine repairs and maintenance will not qualify for the credit. Nor will the cost of purchasing furniture, appliances, audio-visual electronics or construction equipment.
Who Can Claim the HRTC?
About 4.6 million families in Canada are expected to benefit from the credit. Taxpayers can claim the HRTC when filing their 2009 tax return. Eligibility for the HRTC will be family-based. For the purpose of the credit, a family is generally considered to consist of an individual, and where applicable, the individual's spouse or common-law partner. Family members will be able to share the credit.
For more information on this tax credit please visit the government of Canada website: www.cra.gc.ca