Canadians have good reason to be optimistic this year! The Organization for Economic Co-operation and Development projected that Canada will lead the G7 nations in economic recovery in 2010.
To help the recovery get started the Government have announced the temporary incentive for Canadians to complete projects and receive Home Renovation Tax Credits on their 2009 income tax return. The incentive runs from January 31, 2009 to February 1, 2010. This means that home ownership has never been so good. Time to do some improvements, like a new kitchen, update the bathrooms, new flooring, build an addition, or a deck, resurface the driveway, install a new furnace, paint the inside and outside of the house or do some landscaping. The work will need to have receipts on expenses between $1000 to $10,000, which your Contractor will have to provide you with. Routine maintenance, furniture, appliances, tools, carpet cleaning and snow removal do not qualify for this program.
Obviously, there are rules that need to be followed to qualify for these credits, which also cover cottage improvements, but there should be less red tape involved.
Between Home Renovation Tax Credit, the First-Time Home Buyers' Tax Credit, the increase to the RRSP Home Bluyers' Plan withdrawal limits and the enhancements to the ecoEnergy Retrofit program, it makes for a great year to be in home ownership with the Government hoping to boost the economy. Double dipping from two different programs might even be available as well. Check out all the options.