03.15.09

Home Renovation Tax Credit

Posted in Uncategorized at 2:27 pm by Administrator

As well as doing my own research on the Home Renovation Tax Credit, I have talked to a mortgage broker for information. When it was announced, I certainly thought about doing some renovations and wondering what I could do to my home to get the credit. Did you?

If you are not sure what qualifies, think about it this way: If it stays with the house when you move, then it probably qualifies.

That could include:
-floors and the roof
-heating and air conditioning
-insulation
-kitchens, bathrooms and basements
-windows
-paint
Expenses such as labour and building permits qualify too.

But where should you start? New kitchen or hardwood floors? Finish the basement or install new windows? Maybe it is time to build that deck. Unless you are renovating out of sheer necessity – like replacing shingles due to a leaky roof – then you should think about where you’ll get the most bang for your buck.

The 15% can be claimed on any expenditure over $1000 and under $10,000. Since only $9000 is eligible, the manimum you can get back is $1350.

The conventional wisdom points to re-dong your kitchen or bathroom. Home buyers are willing to pay a premium for a great kitchen or bathroom. But a survey by the Appraisal Institute of Canada found that kitchens and bathrooms tend to break even in terms of adding value. Floors and rec rooms returned little more than 50 cents on the dollar at resale.

If you’re planning on riding out this tough economy by cocooning in the comforts of your home, why not be comfortable in your space? Renovations can be a good investment and if it means you’ll be spending more time at home, they can also be a money-saver in the long run. Just remember that the Home Renovation Tax Credit expires on February 1, 2010 and you can only use the credit for the home that you live in.

Now I have to decide what I’d like to do….but first, where’s my contractor?

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