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Candian Home Owners! Have you been deferring that much needed renovation?

By
Real Estate Agent with RE/MAX R.E. (Mountain View)

You can now get a credit on your home renovations thanks to the Home Renovation Tax Credit proposed in the Harper Government's Economic Action Plan.

The Home Renovation Tax Credit will provide a one time, temporary 15% income tax credit on eligible home renovation expenditures for work performed, or goods acquired between January 27, 2009 and February 1, 2010.  The credit may be claimed on eligible expenditures exceeding $1,000 but no more than $10,000.

Properties eligible for the credit include houses, cottages and condominium units that are owned for personal use. (i.e., not rental properties)

The Home Renovation Tax Credit will be family-based (i.e., one credit per family).

The 15-per-cent credit may be claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350 (9000 * 15%).

Renovation costs for projects such as finishing a basement or re-modelling a kitchen will be eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals and incidental expenses.

And don't get all excited... routine repairs and maintenance will not qualify for the credit. You can not claim the the cost of purchasing furniture, appliances, audio-visual electronics or construction equipment for your tax credit.

So go for the renovation which might increase the resale price of hour house!

Raj Khurana
Your Realtor for life
raj@rajkhurana.ca

ABR, e-PRO, PFP, CERC Relocation Specialist

 

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Robert Havana
Park and Protect- Alberta Real Estate License Parking - Calgary, AB
Alberta Real Estate License Parking

It is good to see the government trying to help, however I worry that encouraging people to renovate is going to cause them to stay put longer and dramatically reduce the number of people moving up and down on a frequent basis.  The average time a homeowner keeps their home is likely to increase.

Have a great weekend Raj

Feb 19, 2009 02:17 PM
Raj Khurana
RE/MAX R.E. (Mountain View) - Calgary, AB
Realtor - Link to Calgary Homes

You are right Robert. But don't you think that survival of Rona/ Home Depot is also as important as our selling homes?

Feb 20, 2009 08:23 AM
Matt Horton
Platinum Living Realty - Scottsdale, AZ
North Scottsdale Real Estate

Canadians are buying in Arizona!  I specialize in Scottsdale, so if you have any clients that are interested, I am happy to give a referral fee!  Thanks! Matt Horton John Hall & Associates 480-227-3311

Feb 26, 2009 06:58 PM