Canadian Federal Budget Highlights - Jan 28, 2009
Now might be the right time to renovate...
Home renovation tax credit
Under a new temporary renovation tax credit, home owners can claim a 15 percent non-refundable tax credit for eligible expenditures over $1,000 but not more than $10,000, for a maximum credit of $1,350 ($9,000 multiplied by 15%). The credit is available for eligible costs of work performed or goods acquired after January 27, 2009 and before February 1, 2010. The credit is available for a dwelling that is eligible to be the family's principal residence or that of one or more of their other family members.
...or buy
First-time home buyers' credit
First-time home buyers who acquire a qualifying home after January 27, 2009 may be entitled to claim a new non-refundable tax credit of $5,000 and worth up to $750 ($5,000 multiplied by 15%). To qualify, neither the individual nor his or her spouse or common-law partner can have owned and lived in another home in the calendar year of the new home purchase or in any of the four preceding calendar years. The credit can be claimed by either the purchaser or by his or her spouse or common-law partner.
...or borrow
Home Buyers' Plan threshold increased
The budget increases the amount that first-time home buyers can withdraw from a Registered Retirement Savings Plan (RRSP) to purchase or build a new home to $25,000 (up from $20,000). The new limit applies to withdrawals made after January 27, 2009.
