The recent Federal budget provides a temporary incentive for Canadian homeowners to renovate. The temporary HRTC allows a 15% income tax credit on eligible home renovation expenses for work done or goods bought after January 27, 2009 and prior to February 1, 2010. The credit can be claimed for the 2009 tax year on eligible expenses over $1000 up to a maximum of $10,000 thus providing tax relief of up to $1350.
Eligible expenses include: renovating a kitchen, bathroom or basement, building an addition, deck, fence or retaining wall, interior and exterior painting, new sod, driveway, flooring, furnace, air conditioning and water heater.
For seasoned advice on financing the improvements and which ones provide the best payback for resale, please feel free to contact me.