Home Renovation Tax Credit is Safe

  

By Brian Madigan LL.B.

 

Right now it's just politics. The Home Renovation Tax Credit is completely safe

But, politics is politics and politicians will be politicians. So, what's the story

The Home Renovation Tax Credit was introduced in the Spring. In order to become law it needs to be passed by Parliament. A budget implemenation bill is to be introduced this Fall.

The Liberals have indicated publicly that they will no longer support the minority Conservative government. That leaves two parties, the NDP and the Bloc with the opportunity to do so.

The first Opposition day in Parliament does not occur until later in the month of September. That could be delayed a few days by the government.

However, this is where the home renovation tax credit gets "political". It's popular and has the support of all parties.

The 15 per cent credit allows eligible applicants receive a refund to a maximum of $1,300 on their taxes if they undertake up to $10,000 in home improvements between Jan. 27, 2009, and Feb. 1, 2010.

So, if everyone wants it, what's the problem? The Prime Minister has indicated that this program is now in jeopardy unless the opposition parties support him and support the government.

The Liberals at least have indicated that they want the profgram but they don't want him as Prime Minister.

It appears that the government is attempting to orchestrate its own defeat over the passage of this tax credit. The defeat of the Bill could be as early as September 14th.

Everyone who is not in politics realizes that this is all just "silly talk".

The Home Renovation Tax Credit is safe. It will either be passed this Fall, or it will be passed by the new government after an election.

And, one more point, the Canada Revenue Agency has the power and authority to give effect to the stated intention of the government even without the passage of the appropriate enabling legislation.

So, go ahead and do those repairs and renovations. Just keep those receipts!

Brian Madigan LL.B., Realtor is an author and commentator on real estate matters, Royal LePage Innovators Realty
905-796-8888
www.OntarioRealEstateSource.com

 
This post has been included in Ontario Real Estate News
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3 Comments on Home Renovation Tax Credit is Safe

SEP
08
2009
205,223 Points 1 Featured Post

Hmmmmm.... I don't know.  I don't know if I trust them, and I don't know if I trust Rev Canada to allow all our receipts.  They've been know to disallow plenty of things that we know we can and should be able to write off.  I would feel so much better if everyone got their crap together and just did what they say they are going to do.  Just pass it already.  Approve it.  Stop talking about it and do it.

Just once, I'd like to see them DO something first - get it passed/approved/whatever needs to be done.  Make it the law.  THEN tell me about it and tell me how I can benefit.
I know originally this was probably a great idea to get people to start spending money to help the economy... but don't make it sound like it's a done deal, if we're still talking about it.

 

 

 
3:49pm • #1
805,327 Points 1 Featured Post Outside Blog Attended Rain Camp Called Shot Master

As of today (September 8, 2009), the Department of Finance is still drafting the legislation to implement a large portion of the 2009 federal budget including the Home Renovation Tax Credit ("HRTC").

Bill C-10 was introduced in the House of Commons in early February 2009 to implement certain parts of the budget and that bill had first reading on February 6, 2009.

The amount of time that has passed so far from budget announcement to first reading is not unusual.

While I tend to agree with Brian's comments above with respect to the HRTC, governments have been known to change draft tax legislation prior to passing due to concerns raised by various affected groups.  A good example within the past couple of years were proposed changes to the deductibility of interest expenses in certain circumstances involving foreign entities.  After a big uproar, the law that was passed was different than what was originally proposed.

At this point in time, it is not entirely clear what will qualify and what will not qualify for the HRTC.  Comments provided by Canada Revenue Agency officials at this time can only rely on the budget announcement documents since they do not have any actual legislation.

Canada Revenue Agency will need to decide how they will design the forms and internal assessing software for this year, given that legislation may not have yet passed by the time that tax returns must be filed.  Hopefully, everything will be sorted out by late February 2010 when CRA starts to assess personal income tax returns.
8:55pm • #2
868,771 Points 5 Featured Posts

Sylvie and Marc,

The most sensible thing for all the politicians would be to simply get this thing done.

It seems unfortunate when one party wants the issue clear and the other views their best interest to muddy the waters.

Brian

 
9:20pm • #3


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Brian Madigan LL.B.

Toronto, ON

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RE/MAX West Realty Inc., Brokerage (Toronto)

Address: Toronto, Mississauga, Oakville, Brampton, Caledon, Thornhill, Greater Toronto Area, http://www.iSourceRealEstate.com

Office Phone: (416) 745-2300

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