Tax Tips for 2010
Image: Suat Eman / FreeDigitalPhotos.net
January is a month to recover from the excess of the holidays and to get your finances in order for the upcoming year. Part of getting your finances sorted is getting all of your tax information organized for the upcoming year. There are some things you need to remember about the changes to the tax code, particularly as it affects your property and any potential sales.
Home Renovation Tax Credit
The Home Renovation Tax Credit has been incredibly popular. The Canada Revenue agency estimates that over 3.5 million people have inquired about it since it was introduced, and many renovators want to extend the deadline beyond February 1, 2010. (Don’t hold your breath that it will get extended.) If you have made renovations on your property before the deadline of between $1,000 and $10,000, you can receive up to $1,350 as a non-refundable tax credit. The Canada Revenue agency provides a full list of eligible expenses, but also check out our suggestions.
First Time Home Buyer’s Tax Credit
Beginning in 2009 – and even better, for the foreseeable future – every new home buyer can get a non-refundable tax credit of $750. You do not need to provide any supporting documentation, and the credit applies to houses, condos and even mobile homes. Just make sure that you made the purchase after January 27, 2009. And if you are claiming it with your spouse, he or she cannot have purchased a home before, and together you can only claim $750.
EcoEnergy Program
The Federal Government is helping subsidise any renovations you make that help improve the carbon footprint of your home or that make it more environmentally friendly. You can receive up to $5,000 for your renovations, but make sure that you get a certified energy assessment before you undertake any renovations to ensure that they will be eligible. If you live in Ontario and are planning to sell, this energy assessment will soon be mandatory. So if you make renovations to improve your home’s energy efficiency you could both receive a grant to help cover the costs, and it will improve the home’s resale value. These programs definitely make being environmentally conscious the easy choice.
HST
But it isn’t all good news: on July 1, 2010, the HST will come into effect in British Columbia and Ontario. The HST will reduce the costs of doing business in these two provinces, and these savings may eventually be passed along to consumers. In the short term, however, it will increase the costs of selling your home. And remember: if you are planning on selling before July 1, 2010 to avoid the tax, consider doing it early. There will be a rush in June in these two provinces, potentially reducing the price you could get for your property.
Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com
Related Posts
