Getting Your Due From The Canadian Government

The government has put a big push on to let people know that there are a lot of tax incentives out there.  With tax season upon us, maybe you can claim some.

Check all the opportunities at http://www.cra-arc.gc.ca/menu-e.html

Here are some of them:

The Home Renovation Tax Credit

Budget 2009 proposes to implement a temporary 15-per-cent Home Renovation Tax Credit (HRTC) to provide some $3 billion in tax relief to an estimated 4.6 million Canadian families. The HRTC will encourage investments in Canada’s housing stock, provide employment for tradespeople and boost sales for those who make and sell building products.

The HRTC will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009.

The 15-per-cent credit may be claimed on the portion of eligible expenditures exceeding $1,000 but not more than $10,000, and will provide up to $1,350 in tax relief.

Examples of HRTC Eligible and Ineligible Expenditures

Eligible

  • 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 interior or exterior of a house
  • Resurfacing a driveway
  • Laying new sod

Ineligible

  • Furniture and appliances (refrigerator, stove, couch)
  • Purchase of tools
  • Carpet cleaning
  • Maintenance contracts (furnace cleaning, snow removal, lawn care, pool cleaning, etc.)

    The HRTC can be claimed by homeowners for renovations and enduring alterations to a dwelling, or the land on which it sits.

    A dwelling will generally be considered eligible for the credit if it is used for personal purposes, such as a house, cottage and condominium unit.

    Benefits of the HRTC—Example

    • Sally and Ed are a couple who have recently purchased a house. To take advantage of the temporary HRTC, they decide to replace their old windows and improve the insulation in their home in 2009, instead of waiting, incurring $10,000 in expenditures. After taking into account the $1,000 minimum threshold, a 15-per-cent credit will be available on $9,000 in eligible expenditures, providing tax relief of $1,350.

    Additional information on the Home Renovation Tax Credit will soon be available on the Canada Revenue Agency’s website at (www.cra.gc.ca).

    Home Buyers’ Plan Withdrawal Limit

    To provide first-time home buyers with additional access to their RRSP savings to purchase or build a home, Budget 2009 proposes to increase the Home Buyers’ Plan (HBP) withdrawal limit to $25,000 from $20,000.

    This is the first increase in the withdrawal limit since the HBP was introduced in 1992.

    First-Time Home Buyers’ Tax Credit

    To assist first-time home buyers with the costs related to the purchase of a home, Budget 2009 proposes to introduce a First-Time Home Buyers’ Tax Credit. A 15-per-cent credit will be applied to a $5,000 amount, and will provide up to $750 in tax relief to reduce the costs associated with first home purchases completed after January 27, 2009.