How to take advantage of the Home Renovation Tax Credit
Not only does renovating your home create new levels of comfort and convenience for your family, it can reduce energy consumption and maintenance costs, as well as increasing your home’s resale value. And for a limited time only, the government of Canada is willing to help pay for your renovations!
The Home Renovation Tax Credit (HRTC) is designed to encourage Canadians to do new renovations or move ahead with projects that may have been postponed. If you proceed with eligible home renovations before February 1, 2010, you can claim a 15% tax credit on the portion of eligible expenditures exceeding $1,000, but not more than $10,000. This means you could get back up to $1,350 from the government!
The HRTC can be claimed on houses, cottages and condominium units owned for personal use. Eligible projects include renovating a kitchen, bathroom or basement; installing new carpet or hardwood floors; building an addition, deck, fence or retaining wall; replacing a furnace or water heater; and laying new sod. Routine repairs and maintenance don’t qualify, and neither do purchases of furniture, appliances, electronics or construction equipment. You claim your HRTC when filing your 2009 tax return.
Of course, the big question is, “Where am I going to get the money to do renovations?” Like so many worthwhile investments, the HRTC requires you to spend money in order to make money. The good news is that if you’re like most Canadian homeowners, you may be able to fund your renovations with the equity you’ve built up in your house. And by renovating strategically, your improvements can pay for themselves, plus create a healthy profit when you sell!
As your mortgage advisor, I’d be happy to review your current situation to see if you can benefit from refinancing at today’s low rates. It’s entirely possible that you can enjoy a newly renovated home and receive your tax credit, without increasing your monthly mortgage payments! Talk to us today at 1-888-853-8372 and ask for your detailed FREE report on “9 Secrets to Make Your Home Reno Pay For Itself – Even If You Have Less Than Perfect Credit!”
