Canada's Housing Bubble

Feb 17, 2010 Marco A. Murillo

Canada's Economic Action Plan is designed to provide some $3 billion of fiscal stimulus and encourage investment in Canada's housing stocks.

The Home Renovation Tax Credit for eligible home expenditures ceased on February 27, this year. This means that the temporary incentive to undertake renovations is over. The 15% tax credit may be claimed on the portion of eligible expenditures exceeding $1000 but no more than $ 10,00, meanining that the maximum credit that can be received is $1,350.

The credit can be claimed on eligible expenditures incurred on one or more of an individual’s eligible dwellings. Properties eligible for the HRTC include houses, cottages and condominium units that are owned for personal use. Renovation costs for projects such as finishing a basement or re-modelling a kitchen will be eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals and
incidental expenses.

For detailed information on examples check:

http://www.budget.gc.ca/2009/pdf/pamphlet-depliant3-eng.pdf

Claim it when filing your 2009 tax return.