Eligible Expenditures Under the HRTC – Canada Home Renovation Tax Credit Includes The Following Home Reno Projects
The Canada HRTC or Home Renovation Tax Credit for 2009 and 2010 can be claimed for renovations and alterations to a dwelling (home, condo, townhome, suite) or its land. For example, homeowners in Canada can claim expenditures and expenses for major renovation projects such as finishing a basement, renovating a kitchen or building an addition for an income generating suite. Costs associated with such major renovation projects on your Canadian homes are also eligible for the Home Renovation Tax Credit in Canada HRTC program, including permits, professional services, equipment rentals and incidental expenses. Routine repairs and maintenance normally carried out on an annual basis or more frequently such as cleaning, lawn fertilization and snow clearing do not qualify for the Canada Home Renovation Tax Credit or HRTC of Canada. The cost of furniture, appliances, audio visual electronics and construction equipment are also not eligible for the Canada HRTC tax credit for home renovations. Individuals must keep their home reno receipts for expenditures and expenses and can claim the HRTC Home Renovation Tax Credit when filing their personal income tax returns for 2009. Examples of the Home Renovation Tax Credit or Canada HRTC program expenditures and expenses that include eligible write-offs include: renovating a kitchen, bathroom or basement, new carpet or hardwood floors, building an addition, deck, fence or retaining wall, a new furnace or water heater, painting the exterior or interior of a house, resurfacing a driveway or laying new sod. The following expenditures or expenses, however, are not included in the Canada Home Renovation Tax Credit or HRTC: purchase of furniture or appliances (like kitchen appliances, washer/dryer), purchase of tools, carpet cleaning and maintenance contracts (furnace cleaning, snow removal, lawn care and pool cleaning.)
Renovation Budget Boosts and the 2009 HRTC Canada Program
The latest federal budget offers 2009 Canada home renovation incentives for homeowners, but only if the property is considered to be your principal or primary residence. So for those of you who rent out suites that share a common area, this may be a boost for your reno buck. The incentive is in the form of a 15% Home Renovation Tax Credit (HRTC) of up to $1,350 on eligible home renovation expenses in Canada real estate market undertaken after January 27, 2009 and before February 1, 2010. However, the Home Renovation Tax Credit HRTC is not available in respect of expenditures and expenses for work carried out or goods acquired in that period if the expenditure is made pursuant to an agreement entered into before January 28, 2009. Individuals may claim this HRTC Canada home renovation credit (including expenses made in January 2010) in their 2009 income tax returns. Individuals who earn business or rental income from part of their principal residence are allowed to claim the credit for the full amount of expenses made in respect of the personal use areas of the residence. For expenditures made to common areas or which benefit the housing unit as a whole (such as reshingling a roof), the administrative practices ordinarily followed by the Canada Revenue Agency (CRA) to determine how business or rental income and expenditures are allocated between personal use and income earning use will apply in establishing the amount qualifying for the credit. In other words, if you take a percentage of your home as a rental unit, the same percentage should be applied to the Canada Home Renovation Tax Credit or HRTC (not more and not less). Expenditures and Canada home renovation expenses will quality for the HRTC if they’re incurred in relation to a home renovation or alteration of an eligible dwelling (including land that forms part of the eligible dwelling) provided that the house renovation in Canada or alteration is of an enduring nature and is integral to the eligible dwelling. Such home renovation expenditures would include the cost of labour and professional services, building materials, fixtures, equipment rentals and permits as well. Expenditures on home renovations aren’t eligible if the related goods and services are proceed by a person not dealing at arm’s length with the individual, unless the person is registered for Goods and Services Tax/Harmonized Sales Tax purposes under the Excise Tax Act. Any eligible expenditure for Canada home renovation tax credit or HRTC claimed for the program must be supported with original receipts if possible.
EcoENERGY Retrofit Canada Home Grants
The federal budget in 2009 also proposes an expanded EcoENERGY Retrofit Canada Homes Program and Natural Resources Canada is currently working to finalize the details. Under the current program EcoENERGY Retrofit Homes Grant provides home and property owners with grants of up to $5,000 to offset the cost of making energy efficient improvements. EcoENERGY Retrofit Canada Homes grant apply to a host of measures that reduce energy consumption and provide for a cleaner environment, from increasing insulation to upgrading a furnace. Only Canadian homes that have undergone a residential energy efficiency assessment by an energy advisor certified by Natural Resources Canada will be eligible for EcoENERGY Retrofit Grants. Detached homes, row housing, duplexes, triplexes and mobile homes on permanent foundations and some small apartment buildings of three storeys or less may quality for the Canada EcoENERGY Retrofit Home Grants. The EcoENERGY Retrofit Canada Grant is based on the type and number of energy improvements that have been made and how much the efficiency of the home has been improved. The EcoENERGY Retrofit Grant of Canada is based on how effective that upgrade is in saving energy – not on the cost of the upgrade. The maximum Canada EcoENERGY Retrofit Home Grant one can receive per home or multi-unit residential building is $5,000, whereas the total grant amount available to one individual or entity/company for eligible properties over the life of the EcoENERGY Retrofit Program of Canada is $500,000. The average grant is expected to be more than $1,000 and yield an average 25% reduction in energy use and cost. Contact the government to learn more about the new Canada EcoENERGY Retrofit Home Grants and the changes being applied in 2009.
Home Renovations In Canada – What Should You Reno?
According to Scott of HGTV, here are the top renovations performed in terms of return on investment for your home in Canada: Income generating suite – 200%, Painting – 100%, Kitchen and Bathroom upgrades – 87.5%, Flooring – 80% and Light Fixtures – 67.5%. According to Re/Max Canada home renovations that provide the best return on investment includes: kitchen cabinets, hardwood floors, new windows, removing walls to open up space, finishing the basement, kitchen appliances, new shingles, new bathroom taps and plumbing and new bathroom tiles.
Reno Canada Home Makeovers – Basement Conversions – Made Easy
Step 1: Select your square footage. Step 2: Select your finishing package. Step 3: Select your turnaround time. Starting from $19,999, Reno Canada can completely transform your basement into a liveable entertainment or office space or whatever you would like. Reno Canada takes home renovation to a whole new level with their seamless blend of in house design services, on site project management and only the finest specialized products, personalized service and decorating detail. With Reno Canada renovations, all workmanship is thoroughly inspected to ensure only the best quality craftsmanship. Now’s the time to see how truly easy basement conversion can be through Reno Canada renovations. Ask Reno Canada Renovations today about their exclusive turn key, self contained, upscale efficiency suites. Whether it’s a teenage dorm, an in law suite, or simply additional square footage, now’s the perfect time to maximize your home’s investment through the installation of a quality basement conversion through Reno Canada Renovations. Ask them about the 0% interest free financing on selected bathroom packages through Reno Canada today. These projects quality for the 15% government HRTC credit. Visit
www.renocanada.com for more information about Reno Canada renovations. Includes quality workmanship throughout, all necessary building materials and related supplies. Based on minimum 500 square foot space. May not meet all necessary building codes to quality as ‘retrofit’ status compliant through Reno Canada renovations. 15% government credit applies as per guidelines set out by the Canada HRTC program. Tax(s) extra, cannot be combind with any other offers or promotional incentives from Reno Canada renovations.
Labels: Canada EcoENERGY Retrofit, Canada HRTC, EcoENERGY Retrofit Canada Home Grants, Home Reno, Home Reno Tax Credit, Home Renovation Grants, Home Renovation Tax Credit, Reno Canada Renovations