[canabiz]

We are thinking of having an A/C installed (~ $2,5K) and a patio put in the back (~ $5,5K). Rest will be for painting, sealing the driveway and minor jobs to push the total past $10K...

Quick question: Is this credit only for this year or will it come back in 2010 and beyond ?

 

[CanadianCapitalist]

You may want to check out this post:

The Home Renovation Tax Credit (HRTC)

The HRTC is a temporary tax credit and eligible expenses should be incurred after January 27, 2009 and before February, 1, 2010. The budget document also says stipulates that the expenses should be under agreements entered into after January 27, 2009.

 

[FrugalTrader]

We are thinking of having an A/C installed (~ $2,5K) and a patio put in the back (~ $5,5K). Rest will be for painting, sealing the driveway and minor jobs to push the total past $10K...

Quick question: Is this credit only for this year or will it come back in 2010 and beyond ?

For now, the tax credit is only for this year.

 

[Cammac46]

Funny how it happend but yes, we are using the renovation tax credit...we bought our fist 3 cans of paint about 2 days after the effective date...by accident! We have replaced doors, painting is in progress and we will be doing extensive bathroom renos as well. Total materials will be around $2,000 or so.
Question for anyone who knows...Is the cost of building a shed included in what is eleigible or not?...I haven't seen it mentioned anywhere...I just know I need a large shed. I do all this stuff myself by the way.
Cam

 

[lb71]

I have been keeping most of my receipts from Home Depot and Canadian Tire in case our big projects come in under the $10k limit.

 

[Canadian Finance]

We're moving into a new house next month and will do some new flooring and a deck outside.

While I don't think that this tax credit will do much to save the economy, might as well max it out while it's available!

 

[MGL]

The HRTC hasn't made us decide to go ahead with any renos that we weren't already planning- I'm currently in the middle of a basement reno and will be re-doing our kitchen this year as well. While the HRTC is a nice little benefit, it hasn't changed our behaviour at all.

The only potential change that I see coming will be loading up on materials for next years' projects in January if the program isn't continued.

 

[Alexandra]

We'll be installing a deck for sure this year - we were planning on it anyways. And we might do a little landscaping in our front yard - again something we had talked about already. I would love a bathroom reno, but unless we get a large chunk of unexpected change, I'm going to have to live with it for awhile.

While the tax credit is nice, I don't think it has really done a great job of stimulating people to spend money they would not have otherwise.

What I mean by that is, none of my friends are rushing out to borrow money to take advantage of this tax credit...they are just completing their renovations according to how much money they have budgeted for that purpose this year.

 

[Canadian Finance]

none of my friends are rushing out to borrow money to take advantage of this tax credit...they are just completing their renovations according to how much money they have budgeted for that purpose this year.

I wouldn't normally advise borrowing for a non-deductible purpose, but in this case I have to play devil's advocate. I wrote a post about how if you were planning renovations any time within the next 5 years, you might be better off borrowing and doing it now.

Borrowing for the Home Renovation Tax Credit (HRTC)

 

[nick24]

We are thinking of having an A/C installed (~ $2,5K) and a patio put in the back (~ $5,5K). Rest will be for painting, sealing the driveway and minor jobs to push the total past $10K...

Quick question: Is this credit only for this year or will it come back in 2010 and beyond ?

Watch out for the A/C - it may not be included as it might be classified as an appliance. Have a look at this from the CRA > http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhmrnvtn-eng.html#q15

However, this CMHC page says A/C is covered > http://www.cmhc-schl.gc.ca/en/co/renoho/renoho_004.cfm as do a few posters on RedFlagDeals.

Guess who spent a few K on the basement late last year so won't qualify for this...!

 

[canabiz]

Watch out for the A/C - it may not be included as it might be classified as an appliance. Have a look at this from the CRA > http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhmrnvtn-eng.html#q15

However, this CMHC page says A/C is covered > http://www.cmhc-schl.gc.ca/en/co/renoho/renoho_004.cfm as do a few posters on RedFlagDeals.

Guess who spent a few K on the basement late last year so won't qualify for this...!

nick, I don't consider Air Conditioner to be an appliance like stove or fridge or washer/dryer where they can go with you when you move. To me, A/C is more like a furnace or a water heater, it typically stays with the house once it is installed.

But I will call CRA to confirm before I got any surprise. We have to get it done anyway so it is somewhat a moot point but it is nice to know that we can get some credit.

 

[CanadianCapitalist]

Watch out for the A/C - it may not be included as it might be classified as an appliance.

The budget document specified which expenses will be eligible:

"To be eligible, expenditures incurred in relation to a renovation or alteration to an eligible dwelling (or the land that forms part of the eligible dwelling) must be of an enduring nature and integral to the dwelling, and includes the cost of labour and professional services, building materials, fixtures, rentals, and permits."

I think a central A/C would qualify but a window A/C would not. That's my interpretation anyway.

 

[nick24]

Great! The $2800 I just paid for A/C on Monday is my first step on the ladder.

I need to get 5 replacement windows installed this year too which will also count twice - HRTC as well as the ecoENERGY grant.

 

[Ben]

Canmac46: Yes the shed is covered.

http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhmrnvtn-eng.html#q15

I'm not doing anything additional per se because of the credit, but certainly keeping all my receipts in an envelope to see if they tally higher than $1000 at the end of the year.

Quick re-cap on the value of the credit - first $1000 you spend gets no credit, and only the amount between $1000-$10000 gets 15% credit, so $1350 maximum back in your pocket.

 

[FrugalTrader]

Canmac46: Yes the shed is covered.

http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhmrnvtn-eng.html#q15

I'm not doing anything additional per se because of the credit, but certainly keeping all my receipts in an envelope to see if they tally higher than $1000 at the end of the year.

Quick re-cap on the value of the credit - first $1000 you spend gets no credit, and only the amount between $1000-$10000 gets 15% credit, so $1350 maximum back in your pocket.

Sweet, I was planning on building a shed and a fence this summer. Seems like perfect timing!

Now... who wants to come over and help me out?

 

[MGL]

Sweet, I was planning on building a shed and a fence this summer. Seems like perfect timing!

Now... who wants to come over and help me out?

Will work for beer...

 

[Ben]

Sweet, I was planning on building a shed and a fence this summer. Seems like perfect timing!

Now... who wants to come over and help me out?

Pay for my plane ticket, and I'll think about it. I'm pretty handy with a hammer!

Oh right, and the beer...

 

[mork]

Does buying used/private items qualify? I personally cannot see why not. As an example, I bought a glass shower enclosure (new and all) off of a guy from Kijiji. This will be installed in a basement bathroom in my house so it should certainly be eligible. It has occured to me, however, that he is likely in posession of an original receipt that he may [fraudulantly] be claiming.

 

[Jon Chevreau]

Here's an update on my blog. I suggest it's time to at least line up quotes in order to beat the late January rush. Besides, who wants to get such work done in the dead of winter?

http://network.nationalpost.com/np/blogs/wealthyboomer/archive/2009/09/15/home-reno-tax-credit-likely-to-pass-time-to-get-quotes.aspx

 

[bean438]

So do you actually get 1350 in the bank after spending 10K?

Or do you claim a credit of 1350 for a whopping $202.50 in the bank?

I thought you would pocket 1350 but my uncle was trying to tell me you only claim 1350, giving you only 202.50 back.