More Incentives to Renovate

No matter what your political stripe may be this government’s new budget will benefit home owners who have disposable income to use on renovating or updating their new or existing home. In an attempt to stimulate the home building sector, Mr. Harper’s government has made it possible for people to claim 15% of their home renovations on their 2009 tax return. So, if you’ve decided that this was the year to finally renovate the basement, you’ll receive some tax credit for your efforts. The rules are laid out as follows:

1. You must spend between $1000 and $10000 on eligible home upgrades.

2. The maximum tax credit that you can obtain is $1350.

3. Eligible renovations include kitchen renovations, new flooring, bathroom renovations, home additions, decks, interior and exterior painting, driveway resurfacing, retaining walls, hot water heating and furnaces.

4.  To be eligible, costs for such renovations must be incurred between now and February 1st, 2010.

Remember, if you are renovating your home for the purposes of reselling, not all renovations are considered equal when it comes to resale value. If you are wondering about what parts of your home will get the most return take a look at the Renovation Guide on my website. Other home improvements which qualify for different tax breaks and rebates can be found there, as well.