Weekly Tax Tips
Renovate Your Home
28 May 2009
In an effort to stimulate the economy and, in particular, the housing sector, the federal government introduced the Home Renovation Tax Credit (HRTC) in the 2009 federal budget. This temporary tax credit allows individuals to claim a 15% non-refundable tax credit for eligible expenditures made in respect of eligible dwellings.
The HRTC applies to eligible renovation expenditures between $1,000 and $10,000, resulting in a maximum federal tax credit of $1,350 [($10,000-$1,000) x 15%]. To date, none of the provinces, with the exception of Québec, have decided to offer a similar credit. The HRTC will be based on eligible expenditures for work performed or goods acquired after January 27, 2009, and before February 1, 2010. If you are contemplating renovations to your home, now would be a good time to get this underway.
For further information, see our recent Tax Factor 09-02 article title "A Good Tax Reason to Renovate your Home…"
This tax tip is a publication of BDO Dunwoody LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of 28 May 2009.
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