Toronto real estate facts and News, from Humber Bay Shore Condos, West Toronto, Etobicoke, Mississauga and Oakville. Neighbourhood Profiles, News Items, Information on Real Estate Trends, Market Statistics, Buying; Selling Tips and Commentary
Showing posts with label Home Renovation Tax Credit. Show all posts
Showing posts with label Home Renovation Tax Credit. Show all posts
There are only a few weeks left for the Home Renovation Tax Credit. This program is scheduled to end Feb 01, 2k10 and does not appear slated for renewal. You are eligible to a rebate maximum of $1350 on an expenditure of $10,000 spent on a home improvement.
Go and shop for the materials that you will need for the HRTC and have the work actually done at a later date. Take that additional rebate that is being offered from Vendors and Trades people during this period to commit. Tango Kitchens and Bath Fitters both has special programs. Larger Big box retailers are also offering their own additional 10% savings IE Rona and Home Depot. IKEA has joined the frey with their own get an extra 10% as rebate cards on additional purchases at their stores. They focus their advertising on procrastinators? Is it working?
Enhancement of your home to better your lifestyle.
Improves your equity ( your house is worth more!)
Cook and Head of the household can finally get her dream kitchen.
While we are betting that this program will be extended, I have not heard rumblings anywhere of more press releases indicating this consideration. Given that legislators are on vacation [proroguing] (I think that sounds like a couple of old Ukrainian women making pirogies) I doubt that the extension is imminent.
If you have heard something drop me a line. If you have already fixed it up and are ready to place it on the market my team and I would be pleased to meet with you. Have a New look at what we can do for you.
As part of the Government of Canada's economic action plan, Canadian home owners will be able to claim a home renovation tax credit ("HRTC") for a portion of the costs associated with renovations to their freehold homes, condominium units and the common elements of condominium corporations.
By way of background, the program provides a 15% non-refundable income tax credit on eligible expenses incurred to renovate eligible dwellings. An expense is eligible if it is incurred in relation to a renovation or alteration of an "eligible dwelling".
Examples of eligible expenses include, among others:
renovating a kitchen, bathroom, or basement;
new windows, doors, or flooring;
building an addition, garage, deck, shed, or fence;
a new furnace, woodstove, fireplace, water softener, or water heater;
a new driveway or resurfacing a driveway, re-shingling a roof or painting of a house;
landscaping – new sod, perennial shrubs and flowers, trees, etc.;
swimming pools (permanent – in-ground and above-ground);
associated costs such as permits, professional services, equipment rentals, and incidental expenses
Examples of ineligible expenses include, among others:
furniture, appliances, tools, and audio and visual electronics;
routine repairs, maintenance and cleaning (e.g., furnace cleaning, snow removal, lawn care, pool cleaning, house cleaning); and,
financing costs.
An "eligible dwelling" must be occupied as a principal residence by the owner, or a family member of the owner, between January 27, 2009 and February 1, 2010. Further, the work performed or goods acquired must be performed or acquired, as the case may be, after January 27, 2009, but before February 1, 2010.
The credit applies to expenditures in excess of $1,000.00, but not more than $10,000.00. Accordingly, the maximum credit available is $1,350.00 ($9,000.00 x 15%).
With respect to common element renovations, the cost of all qualifying common element renovations is multiplied by a unit owner's percentage interest in the common elements. This product, to a maximum of $9,000.00, is then multiplied by 15% to ascertain the credit a unit owner is entitled to claim.On the administrative side, boards and property managers will soon have to create a detailed list outlining the costs incurred by the condominium corporation in relation to all qualifying common element renovations. Further, as with renovations to freehold homes and condominium units, all required supporting documentation outlined on the Canada Revenue Agency's website must be retained by the condominium corporation. This list and supporting documentation, together with schedule "D" to the condominium corporation's declaration, should be delivered to unit owners in February or March of 2010. The key is to provide unit owners with the required information after February 1, 2010, so all qualifying expenditures are included, but well in advance of the April 30, 2010 income tax filing deadline.
In early February, boards should consider consulting an auditor to review the list of costs and supporting documentation to ensure compliance with the requirements of the HRTC program. In cases where it is not clear whether a particular renovation qualifies for HRTC, boards may wish to consult legal counsel for an opinion.
For further information on the HRTC program, please visit the Canada Revenue Agency’s website at www.cra-arc.gc.ca/hrtc.
Historically the main function of a fireplace was to provide the principal source of heat, and therefore was typically positioned centrally.
Today, fireplaces are less functional and more focal points for a room; they are installed to create a cozy luminescent atmosphere and their design has to be consistent with the overall style of the home. In the last decade fireplaces have evolved in terms of both style and heating mechanisms.
There are infinite styles available, for example wall mounted, freestanding multifunctional coffee table/fireplaces in a variety of materials (stones, wood, steel, glass) and colours. Along with the traditional wood, gas and electric models, the market has introduced new fuels like gel or liquefied ethanol. These new energy sources are great for condos where it often isn’t possible to install an exhaust system.
All these and more can be found locally at 360living.ca located in Toronto at Dupont and Avenue Road. I had the pleasure to meet with Christine Denault of 360 Living to discuss the most popular choices and finishes. Christine indicated that there was also strong demand for their outdoor self contained units.
I would encourage you, to seek out the newest technology both for their esthetics and improved visual appeal of your west end condo. The Bonus! You also get the Home Improvement Tax Credit.
Take a renovation vacation at your cottage this year and you could enjoy a significant tax break. The Federal Government’s Home Renovation Tax Credit (HRTC) on eligible home renovations undertaken after January 27, 2009 and before February 1, 2010 may be claimed only for the 2009 taxation year and applies to eligible expenditures of more than $1,000 but not more than $10,000, resulting in a maximum credit of $1,350 ($9,000 X 15%).
The good news is that you can apply the credit to across all ‘eligible’ dwellings. The Canadian Revenue Agency (CRA) generally considers a dwelling to be eligible if it is used for personal purposes and could include a house, a condo unit, and a cottage. Additionally, the HRTC is family-based – for the purpose of the credit, a family is generally considered to consist of an individual, or an individual and his or her spouse or common-law partner, including children who will be under 18 years of age at the end of 2009. One family equals one credit but if two or more families share the ownership of an eligible dwelling, each family is eligible for their own separate credit of up to $1,350.
Here are a couple of examples of how you can use the HRTC:
You have a home in town and a cottage at the lake owned by you or your family. You can claim a total credit of up to $1,350 for eligible renovations incurred at either or both dwellings up to the maximum of $10,000 per family.
You co-own a cottage with relatives and the total cost of eligible cottage renovations is $20,000. You can claim a credit $1,350 on $10,000 of the total amount and your co-owners can also claim a credit of $1,350 on the other $10,000.
You must have acceptable documentation – such as agreements, invoices and receipts – to support your claim. These need not be included with your tax return but must be provided if requested by the CRA.
You can’t claim for renovations aimed at earning income – such as the renovation of a basement for rental purposes – only for expenditures made for personal-use area of the dwelling. Eligible expenditures can include:
A kitchen, bathroom or basement renovation
New flooring
Building an addition, deck or retaining wall
Re-shingling a roof
A new furnace or water heater
Interior or exterior painting
Driveway resurfacing or a new driveway
New sod
A permanent swimming pool
Plus associated costs such as permits, services and equipment rentals
The HRTC is for a limited time so if you were planning a home or cottage renovation down the line, it could pay to reschedule it for this year. But before you start laying out large chunks of cash, talk to your professional advisor about how the extra expenditures will affect your overall financial plan.
John Scholl B. Mathematics, CGA, Investors Group(905) 450-2891 X529 (866) 799-2223 Cell; (416) 731-3660 Email: john.scholl@investorsgroup.com
The recently announced Home Renovation Tax Credit may be of interest to people considering the renovation or upgrade of their kitchen. The kitchen is not only the focal point for all your family gatherings but is the most identified feature about your property that buyers are looking at when considering your home as a purchase.
I recently came across a business, Tango Kitchens, in Woodbridge that is using the Home Renovation Tax Credit to their advantage. They are offering to match the Tax Credit as a rebate to those who are hesitating to spend money to improve their homes.
The Rebate is for a limited time only.
Tango Kitchen's has a spacious and well displayed showroom if their kitchen cupboards, styles and trim, in addition to many counter top (granite and others) selections. There is an exquisite example of old world craftsmanship with the bullnose edging on their island in granite display that just does not appear to its potential in a short "videotorial". The showroom is conveniently located at Highway 427 immediately at the Highway 7 exit.
I invite you to contact Jagdish Bajaj Tango Kitchens to have a quote for your new renovation and tax credit.
Creative people with innovative marketing programs will thrive in this economy.
In a recent conversation with Henry Kordowski Tax Accountant (he) brought to my attention the fact that condominium owners are also eligible for the Home Renovation Tax Credit.
The units, condominium suites, in older buildings will have a component from the maintenance fees that are allocated to capital improvement and renovations.
So.. In fact, the maintenance fees that are applicable to the inprovement portion would thereby become deductible.
"When preparing the tax returns, Condominium owners may not realise they are entitled to deduct a portion of the maintenance fees, into bnext years tax return." Henry Kordowski said in a recent interview.
Henry Kordowski is a Tax Accountant in the Bloor west Village neighbourhood and may be contacted at 416 767 7554 hkordca@rogers.com
Effective today, (Jan 28.09) any Canadian who spends money on home renovations will be eligible to receive up to $1,350 in tax relief thanks to the new Home Renovation Tax Credit proposed in the Harper Government’s Economic Action Plan.
“Every time Canadians invest in home renovations, they are helping to create construction and building-supplies jobs in their own communities,” said the Prime Minister.
“By providing an incentive for Canadians to invest in their homes, we are also encouraging them to invest in local jobs.”
To highlight the kind of projects that will be eligible under this plan, the Prime Minister visited an Ottawa-area home renovation site and met with a local contractor who will be better able to protect and create jobs thanks to the additional home renovation projects that will be encouraged through this tax credit.The Home Renovation Tax Credit will provide a one-year, 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.
The Home Renovation Tax Credit is one of several initiatives to help homeowners and homebuyers that is contained within the Harper Government’s Economic Action Plan. Before homeowners, homebuyers, and local construction and building supply workers can benefit from these new initiatives, Parliament must pass the 2009-2010 Federal Budget.
