|
|
Like this article? PLEASE +1 it! |  |
|
Home Renovation Tax Credit
| Guest post by: Brenda Parker |
Article Overview: What you need to know about the Home Renovation Tax Credit to prepare your 2009 tax return.
 |
Free Download - Accounting - Beyond the Tax Return By Brenda Parker |
Home Renovation Tax Credit
I'm sure you have heard of the new home renovation credit in the past year either through the government or the local building supply center flyers. The Home Renovation tax credit is a non-refundable tax credit for work performed or goods acquired for an eligible dwelling.
Basically, any dwelling that you own and use personally may qualify. The housing unit must be the taxpayer's principal residence or that of one or more of their family members at any time during the qualifying period for the credit. A principal residence is owned by the individual and ordinarily inhabited by the individual, a spouse or common-law partner or their child. Eligible expenditure for work performed or goods acquired must be made after January 27, 2009 and before February 1, 2010. Expenditures related to an agreement that was entered before January 28, 2009 will not be eligible.
Eligibility for the HRTC will be family based which covers an individual or an individual and his or her spouse or common-law partner, including children who was under 18 years of age at the end of 2009. A family will be allowed a single credit. If two or more families live in an eligible dwelling, each family will have a separate credit up to $1,350 each that is calculated based on their eligible expenditures. If you own both a home and a cottage, expenditures normally qualify and can be made on both, but the total credit still remains at a maximum of $1,350 per family.
The credit can only be claimed when you prepare your 2009 tax return']);"> personal tax return and is only available on eligible expenditures in excess of $1,000 , but not more than $10,000. This results in a maximum credit of $1,350 ($9,000 x 15%). The expenditures must be made for a renovation or alteration of the dwelling and the land which forms it. It must be of an enduring nature and integral to the dwelling. Basically, if it's something that you cannot pick up and take it with you should you move, then it is most likely an integral part of the house. Regular repairs and maintenance do not qualify. Eligible expenditures include the cost of labor and professional services, building materials, fixtures, rentals and permits. The expenditures must be made for "personal space" as opposed to areas such as a basement or a room which you rent out.
Keep your documentation such as agreements, invoices and receipts. They must clearly identify the vendor/contractor's name and address, their GST/HST number where applicable, the type and quantity of goods purchased or services provided, the date when they were purchased and delivered or performed. There should be a description of where the work was performed. The cost should be shown on the invoice along with proof of payment. Receipts or invoices must indicate "paid in full" or be accompanied by other proof of payment such as a cancelled cheque or debit/credit card slip.
The expenditures will not qualify if the provider of the goods or services is not dealing at arm's length with you (for example: your brother-in-law) unless they are registered for the Goods and Services under the Excise Tax Act.
Check Canada Revenue Agency's website for more information.
When Should You Seek a Home Equity Loan?
Low Income Housing Tax Credit
The time is right to renovate
Why A Good Credit Score Is Important To Your Business
Create your own masterpiece
Should I use personal credit to fund my business?
Business Credit Cards versus Personal Credit Cards
Bookkeeping and Home Remodelling
Get Guaranteed Bad Credit Car Loans & Auto Financing for Used and New Cars
Focus on Your Strengths, Delegate Your Weaknesses
How to Avoid Having a Life
Live a life by design by starting a home based business.
Record Level US Home Sales Bodes Well for Home Stagers
Credit cards: how do we use them?
How to Get a Online New Car Loan with Bad Credit
Need a Bank Line of Credit Use a Bank Guarantee BG Program
Bad Credit Car Loans - Getting a Auto Loan Financing With Bad Credit
To Successfully Obtain Business Capital Every Business Needs A Coach
What is Bad Credit Used Car Loans and How to Apply Online Car Loan?
What affects your credit score?
Article Tags: home renovation, home renovation tax credit, tax credit, tax return
|
About the Author: Brenda Parker RSS for Brenda's articles - Visit Brenda's website
Brenda Parker operates Scotia Accounting and Tax Services located in Stellarton, NS, Canada. After graduating summa cum laude from St. Mary's University in Halifax with a B Comm in Finance and a BA in Economics, she worked for a national grocery firm in various departments with her last role being assistant manager of Taxation. During this time she attained her Certified General Accountant's designation. Since getting her CGA, she has worked in various management/accounting positions for government ,public accounting firms, and as controller of a regional hotel chain and a new car dealership. She is a Simply Accounting Certified Consultant and Quickbooks partner. In her accounting practice she has served both large and small clients in a wide variety of sectors. From personal taxes to businesses in manufacturing, wholesale, retail and services to charities and not-for-profit organizations. She has clients from Cape Breton Island, NS to Montreal, Quebec to Calgary, Alberta and in many locations in mainland NS. All information in her articles is offered without prejudice and she advises readers to consult a professional accountant in person in regards to their personal situations. Click here to visit Brenda's website   Are you an Employee or a Self Employed Individual Moving Expenses Back to School tax tips 1 Wake Up Sleepy Head Its Time to Go to Work Childrens fitness tax credit |
Related Forum Posts
Re: Trade Shows - Are They Worth It?
- HI,
I have used trade shows (not participated) to collect potential clients. For example, the Home & Garden Industry is extremely behind the time in regards to their websites. I attended an Home & Garden Expo in Denver and collected all the companies contact information. I plan on cold calling & mailing information to each business.
It also gave me time to research the industry more, talk directly to the owners in many cases, and learn more about what they need.
Jeff
Building credit
- Credit is like reputations, I suppose. Takes a lifetime to build, and only a second to destroy.
Marketing and PR ideas related to a Credit Organization
- Hello Everybody!
I would be very grateful if you suggested some PR and Marketing ideas for a Credit Organization which target market is poor public who live in village and haven't any access to the internet.
Thanx in advance
Getting financed
- It has always been my experience that it will always be better to be in business debt rather than personal debt, but I suppose when you can run your business out of your home and have so little overhead, it could be better to simply finance yourself and secure a business line of credit just in case you need it. On the flip side, when it comes to businesses outside the home, you want to secure financing and SBA is probably the way to go (depending upon what your total project will cost). Banks that provide SBA loan products prefer the loan be 100K or more. Then there are Micro Loans (loans that go up to 35K) and Signature Loans that are unsecured loans and mainly based on your credit score (680 or higher), they can finance anything in between and then some. It's been said in some of my other posts that when you obtain business loans its beneficial because you are building a track record with a lender for future use. Should you get financed via a business loan and later you need additional working capital to keep your business going (or to expand) the lender is going to be more apt to help you because they have already taken on the risk of your loan. Now, they would prefer you better yourself whether it be expansion or to pull yourself out of a hole so you do not default on the 1st loan... and if that means helping you further, believe me they will do it. However, if you finance yourself, who's going to help you with additional working capital if you run into trouble? Lenders won't help you because you financed yourself...they tend to take on the attitude that you didnt need them before, so why now? What if you had originally financed yourslef with home equity and still haven't paid it back...now you have a first mortgage a second or Home Equity line of Credit and your business is in touble and you have no way out.
Offer Credit instead
- I'm not sure if ChrisH was referring to this but i'll state it more expicitly ..
Charge upfront and offer a refund of double the value back in "Credit" towards your Product or Service you have for sale at the end of the event.
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: 
Build Your List with Joint Venture Giveaway Events
May 2012 Top 100 Social Media Experts to Follow on Twitter
What to measure to be phenomenally successful in business
10 mistakes of media relations
Making Money Blogging Can Be Tons Of Fun 
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Leading with Discernment
Google Panda and Your Search Engine Rankings
Reverse Mentoring
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.