advertisements

Wednesday, October 14, 2009

Federal Home Renovation Tax Credit


Federal Home Renovation Tax Credit (HRTC)

Only available for the 2009 tax year. The Home Renovation Tax Credit is a non-refundable tax credit based on eligible expenses for improvements to your house, condo or cottage.


It can be claimed on your 2009 income tax return. It applies to eligible purchases made after January 27, 2009, and before February 1, 2010. The HRTC applies to eligible expenses of more than $1,000, but not more than $10,000, resulting in a maximum non-refundable tax credit of $1,350 [($10,000 − $1,000) × 15%].

Who is eligible for the HRTC?

Eligibility for the HRTC is family based. The claim can be split among family members but the total amount claimed cannot exceed the maximum allowable. Iwo or more families share the ownership of an eligible dwelling, each family can claim its own credit (i.e., each up to $1,350) that is calculated on its respective eligible expenses.

All expenses must be supported by receipts and acceptable documentation. Keep them in case we ask to see them.

Eligible and ineligible expenses

Considering the extensive number of eligible and ineligible expenses, it is no possible to provide a complete list. The reader is responsible to check the nformation and make sure he meets all required conditions upon asking the tax credit on his income tax report.

Consult the Internet Site at http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/hmwnr/hrtc/lgblty-prd-eng.html for the complete lists.

The expenses are eligible when they are incurred in relation to renovations or alterations to an eligible dwelling (or the land that forms part of the eligible dwelling) and are permanent in nature.

As a general rule, if the item you purchase will not become a permanent part of your home or property, it is not eligible.

No comments:

Post a Comment