A Good Year To 'Fix It Up' and List

Been thinking of doing that little bit of work around the house or wanting to tidy things up before you list?  Then the 2009 Budget could just be the incentive you need.

For the 2009 Tax Year only the government are offering a 'Home Renovation Tax Credit' that actually makes pretty good reading. So if it's new windows, siding or roof shingle 2009 could be the year you have been waiting for. Here's how it could work............

Mr & Mrs 'X' decide to list their home and want to make the maximum dollar value possible.  To do so they talk to their REALTOR® who advises them on possible ways to maximise their property before listing; and as a result the X's decide to have the roof re-shingled.  The work costs $9000 and is started and completed within the 2009 Tax Year.  The X's complete their 2009 Tax Return and claim the maximum allowable $1,350 non-refundable amount (equivalent to 15% of $9000).  Not bad considering they were going to have to do the work anyway!

There are a few eligibility considerations though.  It has to be your primary residence, so anyone thinking of doing some work to that Income Property beware; and the minimum expenditure to qualify for a credit is $1,000.  As with everything there are some exclusions to the type of work you can complete so if your thinking about replacing those old appliances then think again! Also it's assessed per family with the family being assessed to be a single individual, hey lets not make it too easy!

Want to learn more? http://www.budget.gc.ca/2009/plan/bpa5a-eng.asp

I'm far from being a tax expert so check out the above for yourself before doing anything, but I do tend to sense a good offer when it's presented before me and this one seems to be a no brainer.  So if you were considering doing that work around the house in the next couple of years why not bring it forward into the  2009 tax year and benefit from this while it's available. It's not every day you get paid to work on your own place!!

 

Lee Coley

Lee Coley

Sales Representative
CENTURY 21 Trident Realty Ltd.
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