The 15% Tax Rebate on Renovations

[retiredby50]

Hello,

I`m wanting to be able to offer help to my clients regarding the tax rebate on renovations, as a marketing tool for my renovation business. I`ve done a Google search, and been to a government of Canada website. Unfortunately, I`ve been unable to find the skinny on it. I want to make sure I`m doing everything by the book so my reno clients can qualify for the savings. All I know is that it kicks in after the first $1000, and covers 15% of the cost from there up to $10,000.

1-Does anyone know where one might find out the official information on this rebate, or is it too soon yet for the info to be out there?

2-Has anyone heard as to whether revenue properties can qualify, or just homeowner occupied renos?

Thanks all
Keith

 

[willy]

I`ve been watching for new information on this but haven`t seen anything yet.

http://www.budget.gc.ca/2009/pamphlet-depl...pliant3-eng.asp

Only properties owned for personal use qualify, if I read it right.

 

[surfermoe]

Keith, check out this site: www.ShowMeTheGreen.ca . It has a pretty good listing of government grants/rebates for homeowners doing renovations (searchable by province and type of renovation).

Moe

 

[HeatherBrandt]

Home Depot is handing out a leaflet on the subject. It sounds like rental properties will not be given the benefit (only home and cottage). Also, the rebate is given back in your tax refund, so the actual savings won`t come until April 2010.



Additional information on the Home Renovation Tax Credit will soon be available on Canada Revenue Agency’s website at (www.cra-arc.gc.ca).



Information is also available at www.fin.gc.ca

Heather

 

[MonteDobson]

QUOTE (retiredby50 @ Feb 9 2009, 11:29 PM) Hello,

I`m wanting to be able to offer help to my clients regarding the tax rebate on renovations, as a marketing tool for my renovation business. I`ve done a Google search, and been to a government of Canada website. Unfortunately, I`ve been unable to find the skinny on it. I want to make sure I`m doing everything by the book so my reno clients can qualify for the savings. All I know is that it kicks in after the first $1000, and covers 15% of the cost from there up to $10,000.

1-Does anyone know where one might find out the official information on this rebate, or is it too soon yet for the info to be out there?

2-Has anyone heard as to whether revenue properties can qualify, or just homeowner occupied renos?

Thanks all
Keith
Hi Keith,

I talked to someone at the Dept of Finance (Govt of Canada) this morning and they said that all of the little details have not yet been finalized.

My question was around landscaping and what is eligible. He mentioned that sod is eligible, but he was unsure if planting grass, trees, fences etc was eligible or not. He said to check back later when all of the details were released...

So, it appears that even the Govt doesn`t know what will be eligible on this program???

 

[Kimberly]

Try www.actionplan.gc.ca I heard it advertised on the radio and checked out the site.

You`ll find more details... a list (not exhaustive) of what`s included, what`s not.. a few examples of who it applies to or not.
From my research.. it`s for renovations in what you consider your principal residence only. If you rent out a portion of your principal residence, then it is not for any portion of reno where you make income from.

 

[retiredby50]

Thanks all,

The most comprehensive information I was able to find, from one of the above links, was here:

http://www.budget.gc.ca/2009/pamphlet-depl...pliant3-eng.asp

Cheers
Keith

 

[RArora]

do things like having the house painted or interlocking come under this rebate? also do we have to get it done from someone from outside or if we do it ourselves we get the rebate on materials as well?

 

[Ken15]

Try this link:

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

 

[RArora]

Thanks! that was quite informative-just wondering though-so is only a %age of the money spent given back as a tax rebate? i didn`t understand the calculation on $9k at 15% = $1350 for max rebate...? are we only to get 15% of money spent upto $1350 then?

 

[retiredby50]

WARNING!!!! I have received new information that this whole thing may be next to useless.

My understanding, as well as those I`ve talked to, was that this is to be a tax rebate, meaning, we spend our 10K, and we get back $1350 at tax time.

Apparently not so. My sister in law is a partner in an accounting firm. She says it will be a tax credit. Hence, what you save is the amount you would have paid in federal taxes only on the $1350. The real savings on $10,000 spent, according to her, will come out to an average of about $200-250.

People will get all hot and bothered about renovating, and then be bitterly disappointed next year to find out they only saved enough to take their wife out to supper(then again, a night out can be a pretty good `stimulus` package...).

I`ll try to keep on this as information trickles in. And if it turns out I`m wrong, I`ll certainly retract, but so far it sounds like it`s all just a bit of a shell game. When people find out in 2010, it will be too late, and the gov will throw up it`s hands and say, "hey, we said `tax credit.` It`s not our fault 95% of you don`t understand tax terminology..."

You learn something new every day.

Cheers
Keith