If Reno’s on Your Mind, The GVT Can Be Kind
What is it? = HOME RENOVATION TAX CREDIT
The Home Renovation Tax Credit (HRTC) is a non-refundable tax credit on eligible expenses for improvements to your house, condo or cottage. It can be claimed on your 2009 income tax return and it`s for eligible purchases made after January 27, 2009, and before February 1, 2010. A maximum amount of eligible expenditures you can claim is $10,000 per family.
What does non-refundable tax credit mean?
A non-refundable tax credit, like the HRTC, reduces your federal income tax. If the total of all your non-refundable tax credits is more than your federal income tax, a refund will not be given for the difference.
What`s an eligible purchase?
Eligible purchases are those incurred for renovations/alterations to an eligible dwelling (which is usually your principal residence or land of principal residence) and are permanent in nature.
As a general rule, if an expense for the house will not be a permanent part of your home or property, it’s not eligible.
Obviously, there are some small exceptions to this rule which we’ll talk about below.
And as a strict rule, if the expenses are not in writing (invoice or contract) you can forget about it`s eligibility. The CRA (Canada Revenue Agency) is pretty severe on this point.
Examples of eligible expenses
- Renovating a kitchen, bathroom, or basement
- Windows and doors
- New carpet or hardwood floors
- New furnace, woodstove, fireplace, water softener, water heater, or oil tank
- Permanent Home ventilation systems
- Central air conditioner
- Septic systems
- Electrical wiring in the home
- Home Security System (monthly fees do not qualify)
- Painting the interior or exterior of a house
- Building an addition, garage, deck, garden/storage shed, or fence
- Re-shingling a roof
- A new driveway or resurfacing a driveway
- Permanent swimming pools (in ground and above ground), hot tub and installation costs/ Pool liners
- Solar heaters and heat pumps for pools (does not include solar blankets)
- Landscaping: new sod, perennial shrubs and flowers, trees…
- Associated costs such as installation, permits, professional services, equipment rentals, and incidental expenses
- Fixtures – blinds, shades, shutters, lights, ceiling fans, etc.
Examples of ineligible expenses… SORRRYYY!
- Furniture, appliances, and audio and visual electronics, tools
- Carpet/house/pool cleaning
- Maintenance contracts (i.e. furnace cleaning/snow removal/lawn care)
- Financing costs
Other useful info about the eligible expenses:
- Work performed by electricians, plumbers, carpenters, architects qualifies as long as it`s in writing (invoice or contract)
- If a family member is hired for renovations the expense can ONLY be eligible if that person is registered GST/PST.
How to calculate your HRTC?
Basically you can only claim the HRTC if your eligible expenses are more than $1 000, but there`s a cap of $10 000. So that maximum you could possibly get in HRTC is as follows ….don`t worry it`s not that complicated:
=($10 000 − $1 000) × 15% = 1 350$ maximum HRTC (I MEAN IT`S SOMETHING !)
Here`s a cool comprehensive simulation:
Joe & Annie just got married and bought a condo. They plan to renovate it this summer. They expect these expenses for the reno which will take place from September to November 2009:
- New windows: $3,000
- Labour – installation of windows (no invoice) :$1,500
- Carpet cleaning: $200
- Buying tools: $500
- New roof: $3,500
- Interior painting: $500
- New toilet and tub: $600
- New deck: $1,000
To save money, they will do most of the home renovations themselves. Joe’s friend Rob will install the windows for them for $1,500 cash, BUT he won`t give an invoice (duhhhh).
The $200 expense for carpet cleaning and the $500 expense for tools are NOT eligible for the HRTC. And the $1 500 in window installation is NOT eligible either because it`s not in writing.
Basically, this is how they would calculate their HRTC:
| Eligible expenses |
Amount |
| New windows |
$3,000 |
| New roof |
$3,500 |
| Interior painting |
$500 |
| New toilet and tub |
$600 |
| New deck |
$1,000 |
| Total eligible expenses(TEE) |
$8,600 |
| Maximum eligible expenses (lesser of TEE or $10,000) |
$8,600 |
| Base amount |
- $1,000 |
| Maximum allowable home renovation expenses |
$7,600 |
Either Joe or Annie can claim the total home renovation expenses of $7,600 or they can split these expenses between them as long as the total amount claimed is not greater than $7,600. Their maximum HRTC is $1,140 ($7,600 x 15%).
Why is this suddenly only available this year?
Well the CRA wants to get the economy rolling by encouraging investments in Canada’s housing, giving employment to trades people and increasing sales of building products. And because claiming an HRTC implies getting things in writing, the CRA is also cracking on the renovation black-market by creating a disincentive to chose the “Cheaper for cash” option.
So if you were thinking about renovating… TRY TO DO IT NOW! This tax credit is only temporary (i.e. only for 2009 so far) so help stir up our economy.
Reference: http://www.cra-arc.gc.ca/hrtc
The Dalai Lama to give public talk at the Bell Center this weekend!
With multiple wars all over the world and the economic situation affecting people at a personal level, the 14th Dalai Lama’s visit to Montreal this Saturday, October 3rd will be a breath of fresh air that will help us gain a new perspective on these troubled times and look towards the future with optimism.
In a recent interview with The Gazette, the spiritual leader of Tibet shared his opinion on the impact brought on by today’s economic crisis calling its effects ‘tragic’, on individuals and spirituality:
“Hopefully, this [crisis] will provide us with food for thought when assessing our priorities and set of values. If nothing else, it has revealed that materialism is just too fragile a foundation on which to build one’s vision of life.”
He explains that a simpler form of lifestyle, void of materialism, is based on “contentment and [is] much more in tune with a responsible attitude toward nature.”
Whether you are religious or not, I highly encourage you to attend this speech. Unfortunately, it may be too late to get your hands on a ticket to this sold-out event. For his public talk at the Bell Center, entitled ”Educating the Heart: The Power of Compassion.”, the president of the Tibetan government-in-exile since 1959 will primarily discuss promoting the teaching of ethics through the education system.
“The problem is that our society is so dominated by consumerism, and people judge their level of happiness purely in terms of materialism.”
“They forget that the genuine source of happiness comes from within.”
Swine Flu: The Pig is Back
Recently, the government of Canada started an ad campaign for swine flu awareness…. the panic for the pig is revived! So I thought I’d add a little to the panic. Here are some fast facts about H1N1.
How the Pig is Spread
It does not spread by eating pork, soooooo pork chops are still cool. It spreads through coughing, sneezing, or touching contaminated surfaces and then touching the nose/mouth.
Symptoms
Symptoms are similar to those of seasonal flu: fatigue, headache, fever, sore throat, sneezing, coughs, muscle aches and a runny nose.
The Vaccine
The government of Canada signed a 400 million$ contract with GlaxoSmithKline for 50.4 million doses of the H1N1 vaccine. According to a first clinical trial of the pandemic vaccine, one dose of the human swine flu vaccine provides almost 100 per cent immunity three weeks after vaccination.
Rules of Prevention
- Wash those hands often, especially after being in the metro/bus/train/any public place.
- When coughing or sneezing, do it into your arm instead of your hand. I think this could get trendy. And if it does, maybe smelling your armpit can be as well … we’re halfway there.
- Keep everyday surfaces in your house or office disinfected. There are some easy-to-apply sprays & wipes.
- Simple rule of thumb => Sick = STAY AT HOME until better!
It takes about two to seven days, after being infected, to start experiencing the symptoms.
The vast majority of people who are infected are not serious cases at all. Although if you have immune-suppressed health conditions or are a pregnant women, you might want to pay attention to those prevention rules since you could be more vulnerable.
Basically, there’s no need to panic just yet. The government has taken more than enough precautionary measures, so you can take your own. And if you’re the panicky type then just get the shot: they’ll be available in November.
For additional panic on H1N1: http://www.phac-aspc.gc.ca/alert-alerte/h1n1/faq_rg_h1n1-eng.php#vac
For the radio ads: http://www.fightflu.ca
Gendron 2012: Yes we can, tabarnak!
Ëtes-vous en manque de leadership? Croyez-vous que notre belle province se dirige vers une catastrophe économique et même, existentielle? En cette nouvelle ère Obamesque, manquez-vous de confiance envers notre classe politique? Mesdames et messieurs, ne craignez guère! Le changement approche. C’est avec grand plaisir que la chronique politique de montrealing.com offre son appui inconditionnel à l’actuel maire de Huntingdon, Stéphane Gendron, pour les élections provinciales de 2012. Une décision prématurée, dites-vous? Fort probablement. Mais Monsieur Gendron a démontré, au cours des dernières années, qu’il est prêt pour diriger le Québec, et ce, dès que possible! En fait, de son propre aveu, Monsieur Gendron « écoeure le monde dans [son] entourage depuis l’âge de 12 ans en leur disant [qu’il va] devenir premier ministre un jour.»
Ce jour arrive à grands pas. Monsieur Gendron, nous sommes honorés de vous accompagner sur ce chemin qui vous mènera au trône qui vous est destiné.
N.B. : Votre chroniqueur tient à vous assurer, chers lecteurs, que sa couverture de la campagne électorale historique de Son-Excellence-en-attente Monsieur Stéphane Gendron sera dotée de l’objectivité journalistique requise. Cependant, ce même devoir de rigueur journalistique nous oblige de noter que la campagne de Monsieur Gendron risque, en toute objectivité, d’inciter une révolution politique, culturelle, sociale et spirituelle au Québec.