We Do Renovations! - Home Renovation Tax Credit (HRTC) FAQ's
Over the past few months, as global markets have declined, the one investment holding its value, particularly in Central Alberta, is your home. It is the most secure and stable investment you will ever make. The last three years have been a roller coaster in our housing markets, but as we look forward, we believe that you are going to see a return to stability.
What is the HRTC?
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 HRTC can be claimed for renovations and enduring alterations to a dwelling, or the land on which it sits.
How will the HRTC work?
The home owner pays the 1st $1,000 in expenses, and then receives a 15% tax credit on the remaining $9,000 (maximum amount of claim is $10,000). The value of the tax credit is $1,350 ($9,000 x 15%).
The credit can be claimed on eligible expenditures incurred on one or more of an individual’s eligible dwellings. Properties eligible for the HRTC include houses, cottages and condominium units that are owned for personal use.
Renovation costs for projects such as finishing a basement or re-modeling a kitchen will be eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals and incidental expenses.
Routine repairs and maintenance will not qualify for the credit. Nor will the cost of purchasing furniture, appliances, audio-visual electronics or construction equipment.
How will I get it?
To better understand how the credit applies to your individual situation, please contact your tax professional.
Begin to save your receipts for any home improvement project that you are currently working on that qualify for the tax credit.
Examples of what is eligible for the HRTC:
* Renovating a kitchen, bathroom, or basement
* New carpet or hardwood floors
* Building an addition, deck, fence or retaining wall
* A new furnace or hot water heater
* Painting the interior or exterior of a house
* Resurfacing a driveway
* Laying new sodBased on information currently available, it appears the HRTC applies to ‘do it for me’ and ‘do it yourself’ projects, and may be claimed in addition to support from the existing ecoENERGY retrofit program and the medical expense tax credit.
Examples of what is NOT eligible for the HRTC:
* Furniture and appliances (refrigerator, stove, couch)
* Purchase of tools
* Carpet Cleaning
* Maintenance Contracts (furnace cleaning, snow removal, lawn care, pool cleaning, etc.
Is there more information I can get on the HRTC:
Additional information on the Home Renovation Tax Credit will soon be available on Canada Revenue Agency’s web site at www.cra-arc.gc.ca
Call Us Today, 403.341.5933 or email us at renos@truelinehomes.com