Home renovation tax credit

This year, and this year only, there is a special credit available to people that are planning to perform some home renovations. Now, since we are at a point in time where you probably haven't got everything together for your 2008 return, I thought it would be a good opportunity to start planning for the 2009 tax year. I feel that this is a good time to maybe suggest what you do with your 2008 refund (if you get one), since you probably haven't received it yet.

There is a temporary credit available for eligible expenditures on home renovation projects. These projects must fall in the period of January 27, 2009 and February 1, 2010. Now is the time to start planning some painting, kitchen re-modelling, etc. There are numerous items that you may be thinking of, so you should take advantage now. This can lead to many benefits. First, you save on your taxes in 2009. Secondly, if you are thinking of selling your home in the near future, this should increase the value of your home. You may wish to discuss with your real estate agent what renovation projects will be most beneficial (or you can ask me).

The government has introduced this piece in the last budget as a stimulus item that will help our economy. It is up to you to take advantage of it. The credit is a one time deal, so be sure that you find out what information you need before proceeding. You may wish to find out which expenses are eligible, and which expenses are not.

More information can be found here.