malcolm-macaulay@coldwellbanker.ca
905.728.9414 (Office)
Federal Budget Impacts on Home Owners and Buyers
Summary of some Key Tax Measures That Could Have a Direct Impact on You
Provied by RBC Financial Advisory Support
NEW HOME RENOVATION TAX CREDIT
The 2009 budget proposes to introduce a temporary Home Renovation Tax Credit (HRTC) to encourage Canadian's to invest in home improvements. A non-refundable tax credit of 15% will apply to eligible expenditure over $1,000 up to $10,000 resulting in a maximum credit of $1,350 ($9,000 x 15%). If you are not able to use the entire credit the unused portion may be claimed by your spouse, common law partner or minor living at home, provided you do not exceed the single $1,350 maximum credit. This credit will only apply to the 2009 taxation year for eligible expenditure made after January 27, 2009 and before February 1, 2010 and supported by receipts. The credit will not apply to home improvement expenses that are based on an agreement entered into before January 28, 2009. Costs for renovations or alterations of an enduring nature to a qualified principal residence will qualify for the HRTC. This means that if you have both a home and a recreational property that can qualify as a principal residence, you can claim the HRTC for renovation expenses on one, the other, or both. Such costs will include the cost of labour and professional services, building materials, fixtures, equipment rentals and permits. Alterations such as furniture, appliances, audio-visual electronics, routine repairs and maintenance and financing costs associated with a renovation would not qualify for the HRTC.
INCREASED HOME BUYERS PLAN WITHDRAWAL LIMIT
To encourage home ownership and home construction, the budget proposes to increase the Home Buyers Plan (HBP) withdrawal limit to $25,000. Currently, the HBP allows you to borrow up to $20,000 tax-free from your RSP to purchase or build your first home. This increase in the HBP withdrawal limit will apply to the 2009 and subsequent calendar years for withdrawals made after January 27, 2009.
NEW FIRST-TIME HOME BUYERS TAX CREDIT
The budget proposes to introduce a new non-refundable tax credit for first-time home buyers who acquire a qualifying home after January 27, 2009 (a qualifying home is one that is currently eligible for the Home Buyers Plan).
Please contact me if you would like a full copy of this report...........
Provied by RBC Financial Advisory Support
NEW HOME RENOVATION TAX CREDIT
The 2009 budget proposes to introduce a temporary Home Renovation Tax Credit (HRTC) to encourage Canadian's to invest in home improvements. A non-refundable tax credit of 15% will apply to eligible expenditure over $1,000 up to $10,000 resulting in a maximum credit of $1,350 ($9,000 x 15%). If you are not able to use the entire credit the unused portion may be claimed by your spouse, common law partner or minor living at home, provided you do not exceed the single $1,350 maximum credit. This credit will only apply to the 2009 taxation year for eligible expenditure made after January 27, 2009 and before February 1, 2010 and supported by receipts. The credit will not apply to home improvement expenses that are based on an agreement entered into before January 28, 2009. Costs for renovations or alterations of an enduring nature to a qualified principal residence will qualify for the HRTC. This means that if you have both a home and a recreational property that can qualify as a principal residence, you can claim the HRTC for renovation expenses on one, the other, or both. Such costs will include the cost of labour and professional services, building materials, fixtures, equipment rentals and permits. Alterations such as furniture, appliances, audio-visual electronics, routine repairs and maintenance and financing costs associated with a renovation would not qualify for the HRTC.
INCREASED HOME BUYERS PLAN WITHDRAWAL LIMIT
To encourage home ownership and home construction, the budget proposes to increase the Home Buyers Plan (HBP) withdrawal limit to $25,000. Currently, the HBP allows you to borrow up to $20,000 tax-free from your RSP to purchase or build your first home. This increase in the HBP withdrawal limit will apply to the 2009 and subsequent calendar years for withdrawals made after January 27, 2009.
NEW FIRST-TIME HOME BUYERS TAX CREDIT
The budget proposes to introduce a new non-refundable tax credit for first-time home buyers who acquire a qualifying home after January 27, 2009 (a qualifying home is one that is currently eligible for the Home Buyers Plan).
Please contact me if you would like a full copy of this report...........
Published Feb 17, 2009 in Government programs
