Home renovation tax credit:
Homeowners can claim a non-refundable 15% tax credit on eligible home renovation costs incurred and paid after January 27, 2009, and before February 1, 2010, under agreements entered into after January 27, 2009.
The tax credit is available on expenses exceeding $1,000, but a maximum of $10,000 of expenses qualify per family unit, so that the maximum credit will be $1,350 (i.e., $9,000 x 15%).
Eligible
Ineligible
§ Renovating a kitchen, bathroom or basement
§ New carpet or hardwood floors
§ Building an addition, deck, fence or retaining wall
§ A new furnace or water heater
§ Painting the interior or exterior of a house
§ Resurfacing a driveway
§ Laying new sod
§ Purchase of furniture and appliances (ex: refrigerator, stove and couch)
§ Purchase of tools
§ Carpet cleaning
§ Maintenance contracts (ex: furnace cleaning, snow removal, lawn care, and pool cleaning)
Home Buyers’ Plan:
Commencing January 28, 2009, first-time home buyers can withdraw $25,000 from a Registered Retirement Savings Plan (RRSP) to purchase or build a home, without incurring tax. Previously, the limit was $20,000.
First-time home buyers’ tax credit:
First-time home buyers that acquire a qualifying home after January 27, 2009, can claim a 15% non-refundable tax credit on up to $5,000, for a maximum credit of $750. If a home is purchased jointly, the total credit that may be claimed by all purchasers is $750. The unused portion of the credit can be transferred to a spouse or common-law partner.
