Who will take advantage of the Home Renovation Tax Credit?

[lawyerman]

Personally, I will spend some money on my place since it is only a one time deal. Hell, you can even claim house paint (interior and/or exterior).

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

 

[Kirk Lazarus]

I think its a 15% credit and only up to $1500 and you need a receipt. Probably still cheaper to pay under the table.

 

[bennyboy68]

(stands and raises hand)

 

[tboy]

The max is $1350, and the minimum you have to spend is $1000.00. The credit is 15%. It does help but as with all things government they fall short of actually doing something. Now if they had created a program where you could deduct the entire amount, up to $10,000.00, now that would create jobs. 15% is nothing and to set a limit of $1350??

Shit, a good contractor will give that discount in these economic times.......

 

[Cycleguy007]

Yes, and this only applies if you hire someone to do the work for you... Do-it-yourselfers like me are shit outta luck! We can't even claim the cost of materials!

 

[tboy]

Yes, and this only applies if you hire someone to do the work for you... Do-it-yourselfers like me are shit outta luck! We can't even claim the cost of materials!

Yeah well, the tax credit is to get people to hire guys like ME....for once the government is (trying) to do something to HELP me instead of screw me.....and guys like me.....

 

[danmand]

I have a couple of renovation projects I need done anyway, so yes.

 

[Cycleguy007]

Yeah well, the tax credit is to get people to hire guys like ME....for once the government is (trying) to do something to HELP me instead of screw me.....and guys like me.....

Meant no disrespect tboy... I have the utmost of respect for you guys in the trades. I just happen to be real handy in that sorta thing, and I would still be stimulating the economy if I bought all sorts of building materials to do the project myself, so I kinda get screwed over!

 

[tboy]

Hey CG, no offence taken. I think the idea behind the rebate is to get us contractor dudes working. Yeah, you buying materials does help the economy but the benefit is filtered via the retail store you purchase them from.

See, if a homeowner hired a guy to do the work, the economy would get the direct benefit of employing a contractor, PLUS the benefit of the material purchase, not just the material purchase.

I honestly think they should really just give a 50% rebate on any major purchase over x amount. ie: energy star compliant appliances (made in canada), insulation, and frankly, I think they should give a 80% rebate if you own a 70's home (with no wall insulation) and insulate it.

For that matter, I also think they should waive the PST and GST on any vehicle that gets 50 mpg or more.

 

[james t kirk]

Someone tell me, is that for your 2009 tax return I believe.

No good for the taxes I am about to file? - 2008

 

[tboy]

Someone tell me, is that for your 2009 tax return I believe.

No good for the taxes I am about to file? - 2008

Correct. It is for the 2009 tax year.

If you've already had work done you might be able to get the contractor to change the date on the invoice. You "could" have him "complete" the work in '09 which will make it an '09 tax item for both of you.

 

[TheNiteHwk]

... I honestly think they should really just give a 50% rebate on any major purchase over x amount. ie: energy star compliant appliances (made in canada), insulation, and frankly, I think they should give a 80% rebate if you own a 70's home (with no wall insulation) and insulate it...

I agree. Back in the 70's in fact they did have the CHIP program. I can't remember the % of the grant to homeowners... it was a fair amount though.

I spent one very cold but very profitable winter in Edmonton. Worked as part of the sales team for an insulation co. We had 12 people in our sales dept. Six or eight insulation crews working F/T. Other office and support staff etc. Before the grant the co was about 1/4 that size if that.

Only problem was... when the grant expired so did most of those jobs.

 

[kumamake]

and we also get more new shows from "holmes on homes"

 

[Justanormalguy]

When I bought my condo, I didn't upgrade to engineered wood flooring and a gorgeous Black Galaxy granite countertop. I figured why pay the builder $17k to upgrade when I can wait one year for the Tarion warranty to expire, and have someone else do the upgrade for $7-7.5k?

Window coverings? Blinds? Shutters? Hmmmmm. Let's get the builder do a few repairs first. That really cheap and ugly bathroom light installed by the builder? I'll wait for a sale!

Now I can do the upgrades and get a tax credit? Hohoho!!

Moral of the story: procrastination pays!!!!

 

[tboy]

When I bought my condo, I didn't upgrade to engineered wood flooring and a gorgeous Black Galaxy granite countertop. I figured why pay the builder $17k to upgrade when I can wait one year for the Tarion warranty to expire, and have someone else do the upgrade for $7-7.5k?

Window coverings? Blinds? Shutters? Hmmmmm. Let's get the builder do a few repairs first. That really cheap and ugly bathroom light installed by the builder? I'll wait for a sale!

Now I can do the upgrades and get a tax credit? Hohoho!!

Moral of the story: procrastination pays!!!!

Not to say that builders don't mark up the upgrades but have you priced out granite and flooring recently?

Figure at LEAST $6.00 psf for the flooring, $3.50 psf for the install, $2.00 psf for the underlayment and you're talking $11.50 psf plus materials. Now you WILL need to put 1/4 round on every wall to cover the expansion joint and that means repainting your baseboards. Say you do 1000 sq ft. That's $11000.00 +/-

Now plain old everyday granite is about $150.00 per lin ft with no edging, no cutouts etc. So if you have a 10' countertop, with a double sink cutout, a cutout for the faucet and a bullnosed edge, that countertop will run you at least $2500.00 for the plain everyday granite. Now if your galaxy black is what I think it is, that's prolly around $300.00 per lin ft. so figure with the cutouts etc that will be at least $5000.00. Oh, don't forget delivery and install.

wait, that totals $160000.00. Whew. You saved a grand....plus the $1350.00 from the rebate OFF your taxable income but if you make too much money in 2009, that will mean you saved squat.

Oh yeah, where you going to live while they do your floor? You won't be able to live at your place while they put the floor down because everything, and I mean EVERYTHING will have to either be moved into a room that isn't getting the floor, or moved out. I know some guys that will work around furniture, for a 25% surcharge.

 

[Justanormalguy]

Not to say that builders don't mark up the upgrades but have you priced out granite and flooring recently?

Figure at LEAST $6.00 psf for the flooring, $3.50 psf for the install, $2.00 psf for the underlayment and you're talking $11.50 psf plus materials. Now you WILL need to put 1/4 round on every wall to cover the expansion joint and that means repainting your baseboards. Say you do 1000 sq ft. That's $11000.00 +/-

Now plain old everyday granite is about $150.00 per lin ft with no edging, no cutouts etc. So if you have a 10' countertop, with a double sink cutout, a cutout for the faucet and a bullnosed edge, that countertop will run you at least $2500.00 for the plain everyday granite. Now if your galaxy black is what I think it is, that's prolly around $300.00 per lin ft. so figure with the cutouts etc that will be at least $5000.00. Oh, don't forget delivery and install.

wait, that totals $160000.00. Whew. You saved a grand....plus the $1350.00 from the rebate OFF your taxable income but if you make too much money in 2009, that will mean you saved squat.

Oh yeah, where you going to live while they do your floor? You won't be able to live at your place while they put the floor down because everything, and I mean EVERYTHING will have to either be moved into a room that isn't getting the floor, or moved out. I know some guys that will work around furniture, for a 25% surcharge.

Yup. I figured the price of everything would skyrocket . I guess that's why my Moen Eva faucet now sells for $119 online. Price was about $60ish online 1.5 years back (builder charged me $350). I'm not doing the work till September. We'll see what happens then to the cost of materials.

I'm pretty sure no matter what happens though, the final price will be much less than the builder's $9.7k for low grade engineered flooring, $5.5k for lower grade Black Galaxy granite, and $1,750 for a nothing special sink (????!!!!). I didn't ask about the faucet though.

Labour will be through my brother-in-law's brother's company which specializes in renovating condos up and down Yonge St.

 

[calvin & hobbes]

Yes, and this only applies if you hire someone to do the work for you... Do-it-yourselfers like me are shit outta luck! We can't even claim the cost of materials!

ummmmmmmmmm.........
don't know where you got your information but do-it-yourselfer are NOT shit outta luck. Materials are eligable and they don't have to be installed by a contractor!

http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhmrnvtn-eng.html#q1

 

[calvin & hobbes]

Just got off the phone with Service Canada information (1-800-622-6232)
and the person on the phone did confirm that D-I-Y are indeed eligible for the HRTC on the materials only. Even when hiring a contractor the homeowner must buy the materials for the materials expense part to be eligible . If the contractor buys them then only his labour is eligible.

Straight from the horses mouth!

 

[calvin & hobbes]

Hey CG, no offence taken. I think the idea behind the rebate is to get us contractor dudes working. Yeah, you buying materials does help the economy but the benefit is filtered via the retail store you purchase them from.

See, if a homeowner hired a guy to do the work, the economy would get the direct benefit of employing a contractor, PLUS the benefit of the material purchase, not just the material purchase.

I honestly think they should really just give a 50% rebate on any major purchase over x amount. ie: energy star compliant appliances (made in canada), insulation, and frankly, I think they should give a 80% rebate if you own a 70's home (with no wall insulation) and insulate it.

For that matter, I also think they should waive the PST and GST on any vehicle that gets 50 mpg or more.

There is a tax credit on this as well! Its called the Tax Credit for Energy Efficiency. Its for roofs,insulation,doors and windows,HVAC,water heaters etc.
Its not 80% but it is 30%

http://www.energystar.gov/index.cfm?c=products.pr_tax_credits

As far as I know (and I will get on the phone to Service Canada again to confirm) you can claim both tax credits on the same thing ie windows,doors,roofs. Again, I will call to confirm.

Remember to all, this is only a tax CREDIT. I was initially led to believe that it would be a refund (and some ads continue to make that belief). I talked to my accountant and they said that it will reduce your taxable income by up to $1350 . Depending on your tax bracket you may only get back $500-800 or less or maybe even nothing at all. So......... its better than a kick in the ass but its not all its cracked up to be or what the government will have you believe it is.

 

[tboy]

Just got off the phone with Service Canada information (1-800-622-6232)
and the person on the phone did confirm that D-I-Y are indeed eligible for the HRTC on the materials only. Even when hiring a contractor the homeowner must buy the materials for the materials expense part to be eligible . If the contractor buys them then only his labour is eligible.

Straight from the horses mouth!

Well, that kind of goes against:

"9. I am planning to replace my windows in 2009: can I hire my brother-in-law to help me out and still be eligible?
It depends. Expenditures will not be eligible if the related goods or services are provided by a person not dealing at arm's length with the individual, unless that person is registered for the Goods and Services Tax/Harmonized Sales Tax under the Excise Tax Act. So, in your case, if your brother-in-law is registered for GST/HST and if all other conditions are met, the expenditure will be eligible for the credit."

Seems to me the person doing the work must have a "business" or registered with RevCan for GST.

Confusing as ever lol