Planning on renovating this year? You had better start on it soon! The Home Renovation Tax Credit (HRTC) is ending on Feb 1st, 2010. The HRTC gives Canadians a non-refundable tax credit of 15% on amounts above $1,000 but below $10,000 that homeowners spend to renovate their home.
Below are a few projects you might consider doing. Keep in mind that only projects above $1,000 will be eligible for the tax credit. So if you decide to do any lower priced projects, consider doing them in combination with other projects to ensure you can claim at least some of the expenses.
1. Install a New Water Heater
Although a new water heater will only cost around $400, the labour costs of installation and disposal of your old unit could push expenses up to $1,000. On its own, this is not sufficient to earn the tax credit; however, in combination with other projects, you could earn up to $150 in tax credits for that new water heater. Improving your water heater will also make your home more environmentally friendly and will save you energy and money. Sounds like a win all around!
Image: FreeDigitalPhotos.net
2. Interior Painting
Painting can vary wildly in price. You can buy a few cans of paint and brighten up your living room yourself. Or, you can indulge in some makeover madness and have some professionals redo your entire house. If you do decide to call in some professionals, costs can rise to upwards of $2,000 (depending on the square footage that will be painted), netting you a tax credit of $150. Painting is also one of the easiest ways to refresh your house before a potential sale.
3. Bathroom Renovation
Fixing that leak in the bathroom can be a good excuse to replace any out-of-date tile colour schemes. According to OntarioContractors.com, bathroom renovations can cost anywhere from $3,600 for a new basement washroom to upwards of $9,000 for a complete overhaul of an existing bathroom. This may sound like a lot, but consider that with expenses close to $10,000, you’ll get nearly the maximum tax credit of $1,350.
4. Kitchen Renovation
The kitchen is one of the most used rooms in the house, and is likely the one most in need of a good refreshing. OntarioContractors.com says that renovating it will cost less than a bathroom (upwards of $7,000); however, this is not taking into account possible size variations and the complexity of your renovation. Remember, as with all of these suggestions, only expenses incurred in the month of January are eligible. So, paying your contractor in advance might be a wise idea.
Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com
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