Work performed by electricians, plumbers, carpenters, architects
Generally, work performed by electricians, plumbers, carpenters, architects, etc.
in respect of an eligible expense qualifies.
Family member hired for renovations
Expenses are not eligible if the goods or services are provided by a person related to you, unless that person is registered for the Goods and Services Tax/Harmonized Sales Tax under the Excise Tax Act. If your family member is registered for GST/HST and if all other conditions are met, the expenses are eligible for the HRTC.
Eligible dwellings
An eligible dwelling is a housing unit that is eligible to be your principal residence or that of one or more of your family members at any time between January 27, 2009, and February 1, 2010.
In general, a housing unit is considered to be your principal residence when it is owned by you and ordinarily inhabited by you, your spouse or common-law partner, and your children. This means that any dwelling that you own and use personally could qualify, including your home or your cottage.
Cottages
If you own and use your home and cottage personally, eligible expenses incurred for both properties will normally qualify for the HRTC. Note that the maximum amount of eligible expenses you can claim for the HRTC is $10,000 per family.
Rental and/or business use of an eligible dwelling
If you earn business or rental income from part of an eligible dwelling, you can claim the HRTC only for expenses incurred for the personal-use areas of the dwelling.
Condominiums and co-operative housing corporations
For condominiums and co-operative housing corporations, your share of the cost of eligible expenses for common areas qualifies.
Eligibility period
The HRTC is based on eligible expenses for work performed or goods acquired after January 27, 2009, and before February 1, 2010, under an agreement entered into after January 27, 2009, related to an eligible dwelling.
Federal Home Renovation Tax Credit ( part 3 )
by alex | 5:54 AM in business or rental income, eligible expenses, Home Renovation Tax, principal residence | comments (0)
Federal Home Renovation Tax Credit ( part 2 )
by alex | 8:13 AM in eligible expenses, HRTC credit, ineligible expenses, tax return | comments (0)
Some businesses or individuals may assert that certain items qualify for the HRTC. It is important to remember that you are responsible for ensuring that all eligibility requirements are met when you claim this credit on your tax return.
Examples of eligible expenses
- Renovating a kitchen, bathroom, or basement, windows and doors
- New carpet or hardwood floors
- New furnace, boiler, woodstove, fireplace, water softener, water heater, or oil tank
- Permanent Home ventilation systems, central air conditioner
- Septic systems and wells
- Electrical wiring in the home, home Security System (monthly fees do not qualify)
- Solar panels and solar panel trackers
- Painting the interior or exterior of a house
- Building an addition, garage, deck, garden/storage shed, or fence
- Re-shingling a roof
- A new driveway or resurfacing a driveway
- Exterior shutters and awnings
- Permanent swimming pools, hot tub and installation costs (in ground and above ground)
- Landscaping
- Associated costs such as installation, permits, professional services,equipment rentals, and incidental expenses
- Fixtures - blinds, shades, shutters, lights, ceiling fans, etc.
Note
Window coverings, such as blinds, shutters and shades, that are directly attached to the window frame and whose removal would alter the nature of the dwelling are generally considered to be fixtures and therefore would qualify for the HRTC.
In some circumstances, draperies and curtains may qualify for the HRTC, if they would not keep their value or usefulness if installed in another dwelling. If these qualifying criteria are not met, it is likely that draperies and curtains would not qualify for the HRTC.
Examples of ineligible expenses
- Furniture, appliances, and audio and visual electronics
- Purchasing of tools
- Carpet cleaning
- House cleaning
- Maintenance contracts (e.g., furnace cleaning, snow removal, lawn care, and pool cleaning)
- Financing costs
Federal Home Renovation Tax Credit
by alex | 8:03 AM in federal tax credit, home renovation, HRTC credit, tax credit | comments (0)
Federal Home Renovation Tax Credit (HRTC)
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.
Canada Rate Hikes
by alex | 6:23 AM in interest rates, real estate strength, ultralow mortgage rates | comments (0)
Excessive real estate strength in Canada from ultralow mortgage rates could push the Bank of Canada to raise interest rates sooner or more aggressively than forecast, according to a TD Economics report on Tuesday.
The possibility is worth watching closely, the economics arm of Toronto-Dominion Bank argued, although it also said the most likely scenario is that the real estate market will moderate and inflation will remain in check.
The Bank of Canada has pledged to keep its interest rates unchanged at 0.25 percent until mid-2010, unless it sees a threat of inflation spinning out of control.
TD pointed to recent statements by the central bank that hinted that it would seek to lean against signs of emerging asset bubbles and that it is also monitoring developments in home prices.
In a recent speech, Bank of Canada Governor Mark Carney deemed the strength in existing home sales as "temporary", reflecting "pent-up demand" and improved affordability.
"The (Bank of Canada's) view at the moment is that the recent resurgence in real estate is temporary, but if it does not moderate in the coming year -- or worse still if price growth accelerates -- it could lead to an earlier and more substantial tightening in policy than currently anticipated," TD economists Craig Alexander and Grant Bishop said in the report on Tuesday.
The economists stressed that the central bank targets the rate of consumer price growth and does not target asset values.
"The key issue is whether the low interest rate environment is creating an economic imbalance that requires a rebalancing of monetary policy," the TD economists said.
Canadian real estate markets have staged a stunning turnaround this year from the end of 2008 when sales and prices retreated sharply. The latest Canadian Real Estate Association data showed August home sales were up 18.5 percent from a year ago, while prices rose 11.3 percent nationally from a year earlier to an average C$324,779 ($306,395).
TD expects sales will cool in the coming months and for price growth to return to a mid-single digit pace after months of pent-up demand and tighter mortgage pricing.
"The base-case economic forecast does not anticipate that hot real estate markets will force the Bank of Canada's hand, but it is a risk worth closely monitoring," the TD economists said.
TD expects the Bank of Canada will begin to gradually lift the benchmark overnight interest rate in the fourth quarter of 2010.
