The Home Renovation Tax Credit

If you have been contemplating a renovation, the best time to do it is between now and Feb. 1, 2010, because the government is going to give you a tax credit of up to $1,350 for doing so.

The tax credit is available on home renovation expenditures in excess of $1,000 to a maximum of $10,000. You can spend more, but the maximum tax credit is on $9,000, which will net you the maximum tax credit of $1,350.

You can have your kitchen, bath or basement redone. You can have your windows replaced. You can have new carpet or hardwood floors installed. You can build an addition, deck, fence or retaining wall. Get it done in the next year and the government will help you out financially.

You can even claim the cost of the building permit, professional fees and equipment rentals.

Perhaps the best news of all is that you can claim energy-efficient retrofits under the existing federal and provincial energy efficiency retrofit incentive programs to a maximum of $5,000 per level of government, $10,000 total, over and above the home renovation tax credit.

As far the RRSP Home Buyers' Plan, first-time buyers can now withdraw up to $25,000 per person or $50,000 per couple compared with $20,000 and $40,000 previously, to put towards a home purchase.

The First-Time Home Buyers' Tax Credit is a $5,000 non-refundable income tax credit to offset closing costs such as legal fees and disbursements and land transfer tax.

For an eligible individual, the credit will provide up to $750 in federal tax relief starting in 2009.

For more information please call

Eva Novotny

Re/Max Ultimate Realty Inc.Broker

416-487-5131

eva.n@sympatico.ca