Eligible Expenditures and Reno Expenses Under the 2009 HRTC Canada Home Renovation Tax Credit PLUS EcoENERGY Retrofit Canada Home Grants & Reno Canada

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.

The Home Renovation Tax Credit for Edmonton Home Owners and Calgary Real Estate Investors – Canada HRTC and how it affects Alberta

What is the Home Reno Tax Credit and How Is It Different From Previous Federal Government Energy Efficiency Home Initiatives?

If you live in or around the Edmonton area, why not consider the new Home Renovation Tax Credit supplied by the federal government during their latest budget. Also known as the Canada HRTC, the Canadian Home Renovation Tax Credit provides up to fifteen per cent rebate on most home renovations. As an initiative in the 2009 Federal Budget, the Canadian HRTC Home Renovation Tax Credit helps Calgary and Edmonton home owners and investors in making some much needed home renovations on their property. Up to $1350 will be rebated by the Canadian federal government according to the 2009 Budget for renovations on everything from sodding their lawns to renovating their bathrooms and kitchens. This is in efforts by the Canada federal government to stimulate spending on home renovations and houses during a time of global economic problems. The HRTC Canada or the Home Renovation Tax Credit will allow Edmonton home owners and Calgary real estate investors to save a lot of money when it comes to small to large renovation projects at home. The Canada Home Renovation Tax Credit 2009 will allow home builders and house owners in Calgary and Edmonton real estate to claim up to 15% of their renovation costs up to the date of February 1st, 2010. This will certainly stimulate spending by a certain segment of Edmonton’s and Calgary’s home owner sector who have put off making renovations and rebuilding their homes for a while due to high costs of trades and materials.

What is the Canadian HRTC Tax Credit Offered by the 2009 Federal Budget

As the global economic crunch has hit the major cities of Edmonton and Calgary in Alberta, once the booming capitals of Canada, consumer spending has decreased significantly in the past 12 months. Because of this, the Federal Budget 2009 announced the new HRTC tax credit for home renovations in Canadian homes, which will provide just a temporary stimulus for new Edmonton home renovation projects or accelerate planned future Calgary house reno projects. The document about the Canada HRTC tax credit on home renovation grants also says: thus providing timely stimulus to the Canadian economy while boosting energy efficiency and the value of Canada’s housing stock.” Overall, the Federal Budget 2009 outlines that they expect more than 4.6 million families to take advantage of the Canadian Home Renovation Tax Credit between now and February 1st, 2010 (which is when the HRTC expires) which will save home owners and real estate investors more than $3 billion (in tax relief) while stimulating trades and material consumption in Alberta. Effective immediately (January 25th, 2009) until Feb 1, 2010, the Home Renovation Tax Credit for homeowners can be applied to any home, cottage, rental property or house that you own. The HRTC Canada is expected boost and stimulate three industries that include forestry, home retail and construction to levels that can maintain employment until the economic forecast improves in Alberta and in Canada. How the Canadian Home Renovation Tax Credit HRTC works for Edmonton property owners and Calgary homeowners is that taxpayers can claim the home renovation costs on their 2009 (next years) tax returns. However, the stipulation on the tax credits for home renovations for Canadian households including those Edmonton home owners and Calgary real estate investors is that the home renovations have to cost between $1000 to $10,000 for the HRTC to apply for your reno project.

How You Can Benefit From the Canada HRTC Home Renovation Tax Credit 2009

As an Edmonton home owners and Calgary property investor or homeowners, you can easily benefit from the 2009 Federal Budget announcement of the Home Renovation Tax Credit this year. For those who have waited to get some home renovations done on your own Edmonton home or Calgary property, now is the time to do it as materials and trades have become more affordable and with the 2009 HRTC in place, you are bound to save even more money on your project compared to last year. This much needed home renovation program in Canada is much more efficient and less stringent then previous attempts by the Federal Government to increase initiatives for home renovations mainly based on energy efficiency which required auditors and property appraisers to make sure that the changes are realized properly. With those previous initiatives, many homeowners in Edmonton and Calgary decided to hold on and not spend as the rental incomes and property were increasing in value regardless of any renovations being made. Now with the HRTC or Canadian Home Renovation Tax Credit, the 2009 Federal Budget oulines that individuals who are home owners are only required to apply for the tax credit directly on their 2009 income tax returns. All the federal government in Canada is requesting for the HRTC tax credits are the appropriate receipts for your Edmonton or Calgary home renovation project which will be audited by Revenue Canada next year. For those looking to finish their basement or improving their landscaping for greater curb appeal, contractors must invoice you on such jobs so as to produce paperwork that proves that money changed hands and that the home renovation in your Alberta home actually did take place.

What’s Included in the Home Renovation Tax Credit?

The home renovations included in the HRTC Canada tax credit relief includes many things for Edmonton homeowners and Calgary real estate owners to consider. Routine maintenance does NOT quality for the Canada HRTC tax credit. Things such as new purchases for appliances (like kitchen appliances, washer/dryers), furniture are not included and therefore do not quality for the Canadian Home Renovation Tax Credit 2009. In addition, such things as daily or seasonal maintenance do not quality such as lightbulb changes, water filters, snow removal, and carpet cleaning. None of these are covered by the HRTC Home Renovation Tax Credit in Canada at this time. However, there are certainly many home renovations in Edmonton and Calgary real estate market that will be considered and qualify for the HRTC 2009 tax credits. These include small or large renovations of kitchens, bathrooms and finishing basements. Also qualifying for the Home Renovation Tax Credit Canada include new flooring (carpets, hardwood, lino etc.) in addition to additions to your Edmonton home or Calgary house that includes building out decks, patios, balconies in addition to retaining walls. Other less glamorous home renovations in Edmonton and Calgary that quality and are included in the Home Renovation Tax Credit include replacing furnaces and water heaters. More surprising inclusions for the HRTC 2009 are interior and exterior painting as well as driveway resurfacing for those who require it. As you can see, there is no energy efficiency stipulation in the 2009 Federal Budget announcement of the Home Renovation Tax Credit, so your home renovations do not have to fit the stringent regulations of the energy efficiency protocal. Overall, the HRTC Canada tax relieve for home renos should save Canadian home owners more than $3 billion over the next year.

RRSP Contributions for First Time Home Buyers

In addition, the federal government announced that first time home buyers in Canada can borrow up to $25,000 from their RRSPs for the purchase of their first home. This RRSP contribution for first time home buyers has been increased from $20,000 to $25,000. If you are married or common law, the federal government allows each individual to contribute and borrow from their RRSPs for their first purchase. So, it used to be $20,000 x 2 for a total of $40,000 towards their home purchase. With the recent change in the 2009 Federal Budget, first time home buyers can contribute up to $25,000 x 2 for up to borrowing $50,000 for their first house purchase.

Canada’s Economic Action Plan for Housing and Homes

The government of Canada’s proposed Economic Action Plan contains new tax measures that may benefit you. If you’re a homeowner, or are planning to become a homeowner, the Action Plan can help support for home renovations. For a limited time, the new Home Renovation Tax Credit, or Canada HRTC, means homeowners could receive up to $1,350 in tax relief on renovation expenses until 2010. Support for first time homebuyers could also benefit from the Canada Economic Action Plan 2009 with an increase to $25,000 in the amount you can withdraw from your RRSP under the Home Buyers’ Plan to purchase or build a first home. A First Time Home Buyers’ Tax Credit that allow syou to save up to $750 on the closing costs of a first home is also another measure in the Canada Economic Action Plan 2009. For more information about Canada’s Economic Action Plan, please visit www.actionplan.gc.ca today or call 1.800 O-Canada (1.800.622.6232).

Tax Break Boosts Canada Home Renovations

In a new survey conducted shortly after the 2009 Federal Budget announcement by the government of Canada, Canadians were asked what impact the Home Renovation Tax Credit (HRTC) will have on their plans for home renovations this year and next year. According to the newest survey conducted by Angus Reid Strategies, one in five Canadians reported the HRTC makes them more likely to undertake home renovation projects in the next 12 months. The Home Renovation Tax Credit or Canada HR is a temporary 15 per cent tax credit that can be claimed on up to $10,000 of eligible home renovation expenditures between January 27, 2009 and Feburary 1, 2010. The credit will apply to the portfion of eligible expenditures on home renovations that exceends $1,000 but does not exceed $10,000, up to a maximum credit of $1,350.

First Time Canadian Home Buyers Get $750 Tax Break – Is This Enough?

Many economists are wondering if the recent first time homebuyers $750 tax break for Canadians is enough to help stimulate the ailing Canadian real estate market. The new federal governemtn offere a number of initiatives to benefit homebuyers and home owners and this $750 First Time Home Buyer’s Tax Credit is to help first time homebuyers with their closing costs, land transfer taxes and other legal fees occurred upon closing their property. A new Home Renovation Tax Credit or HRTC Canada of up to $1350 will help current home owners write off a 15% portion of eligible home renovations for the next 12 months on their personal tax returns. This is in addition to a new funding program for ecoENERGY Canada retrofits that provides home and property owners up to $5,000 for energy improvements and a new social housing program just released by the federal government. An increase of the Home Buyer’s Plan for borrowing RSP for first time home buyers has also increased from $20k to $25k (for couples you can multiple that by 2).