We were recently contacted with further information to provide homeowners with facts about the 2009 Home Renovation Tax Credit. Great timing since there have been many interesting questions about what projects, materials, or labour are applicable for this credit.

Image provided by Sico Paints

To view the webpages, visit:   http://www.cra-arc.gc.ca/hrtc/

Below, is the FAQ page content, which hopefully will answer some of your questions about how you can benefit from this tax credit.

Here is the link of the page: http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhmrnvtn-eng.html

FAQS

1. What is the Home Renovation Tax Credit (HRTC)?

The proposed HRTC is a non-refundable tax credit for work performed or goods acquired in respect of an eligible dwelling.

2. What is meant by eligible dwelling?

An eligible dwelling is a housing unit that is eligible to be an individual’s principal residence or that of one or more of their family members, at any time between January 27, 2009 and February 1, 2010. In general, a housing unit is considered eligible to be an individual’s principal residence where it is owned by the individual and ordinarily inhabited by the individual, the individual’s spouse or common-law partner, or their children. This means that any dwelling that you own and use personally could qualify, including your home or your cottage.

3. What is the eligibility period?

The credit will be based on eligible expenditures for work performed or goods acquired after January 27, 2009, and before February 1, 2010. Expenditures incurred pursuant to an agreement that was entered into before January 28, 2009, will not be eligible for the credit.

4. Who will be eligible for the credit?

Eligibility for the HRTC will be family based. A family will generally be considered to consist of an individual or an individual and his or her spouse or common-law partner, including children who will be under 18 years of age, at the end of 2009. A family will be allowed a single credit that may be shared within the family.

If two or more families share the ownership of an eligible dwelling, each family will be eligible for their own separate credit (i.e. each up to $1,350) that will be calculated on their respective eligible expenditures.

5. How will the credit be calculated?

The credit will only be available for the 2009 tax year and applies to eligible expenditures of more than $1,000, but not more than $10,000, resulting in a maximum credit of $1,350 ($9,000 x 15%).

6. What are eligible expenditures?

To be eligible, expenditures incurred in relation to a renovation or alteration to an eligible dwelling (or the land that forms part of the eligible dwelling) must be of an enduring nature and integral to the dwelling, and includes the cost of labour and professional services, building materials, fixtures, rentals, and permits.

Eligible expenditures must be supported by acceptable documentation.

7. What does the CRA consider to be acceptable documentation?

Documentation, such as agreements, invoices, and receipts, must clearly identify the type and quantity of goods purchased or services provided, including, but not limited to, the following information:

• information that clearly identifies the vendor/contractor, their business address and, if applicable, the GST/HST registration number;
• a description of the goods and the date when the goods were purchased;
• The date when the goods were delivered (keep your delivery slip as proof) and/or when the work or services were performed;
• A description of the work performed including the address where the work was performed;
• the amount of the invoice; and
• proof of payment.  Receipts or invoices must indicate paid in full or be accompanied by other proof of payment, such as a credit card slip or cancelled cheque.

Please consult our Underground Economy Web page, for tips to protect yourself when hiring a contractor.

To verify whether someone is registered for GST/HST, please consult the GST/HST Registry.

8. If I own both a house and a cottage and incur eligible expenditures for both, are both sets of expenditures eligible for the HRTC?

If you own and use your home and cottage personally, eligible expenditures incurred for both properties will normally qualify for the HRTC. Please note that the maximum amount of eligible expenditures you can claim in respect of the HRTC is $10,000 per family.

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.

10. Will expenditures for the common areas of condominiums and co-operative housing corporations qualify for the credit?

In the case of condominiums and co-operative housing corporations, the individual’s share of the cost of eligible expenditures for common areas will qualify.

11. I rent out my basement. If I renovate the basement for my tenant, will I be allowed to claim the credit?

No. Individuals who earn business or rental income from part of their principal residence will be allowed to claim the credit only for expenditures made for the personal-use areas of the residence.

For expenditures made for common areas or that benefit the housing unit as a whole (such as re-shingling a roof), you must divide the expense between personal use and income-earning use. For further information, please consult the Business and Professional Income Guide or the Rental Income Guide, as applicable.

12. If an eligible expenditure also qualifies for the Medical Expense Tax Credit (METC), will I be allowed to claim both the HRTC and METC?

Yes. Where an eligible expenditure qualifies for the METC the individual will be permitted to claim both the METC and the HRTC for that expenditure.

13. Will the credit be reduced by other government grants or credits that I may receive for the same expenditures?

No. Eligible expenditures will not be reduced by other government tax credits or grants that the individual may be entitled to.

14. Does work performed by electricians, plumbers, carpenters, architects, etc. qualify?

Generally, work performed by electricians, plumbers, carpenters, architects, etc. in respect of an eligible expenditure will qualify. See below for examples of eligible expenditures. If you’re planning on hiring a contractor to do construction, renovation, or repair work on your home, the Get it in Writing! Web site has information that will help you.

15. Could you provide me with some examples of eligible and ineligible expenditures?

Yes, some examples are:

16. What types of expenditures will not qualify?

The following expenditures will not be eligible for the HRTC:

• the cost of routine repairs and maintenance normally performed on an annual or more frequent basis;
• expenditures that are not integral to the dwelling, and other indirect expenditures that retain a value independent of the renovation;
• expenditures for appliances and audio-visual electronics; and
• financing costs.

17. Do I have to submit any supporting documents with my income tax return?

No. However, you must ensure that this information is available, should it be requested by the CRA.

18. How will I claim the HRTC?

A new line will be incorporated in the 2009 personal income tax return to allow you to claim the credit.

19. Where can I get more information about this new tax credit?

Additional information will be posted on the CRA’s Web site as it becomes available. In the meantime, please see the Department of Finance’s Budget 2009 documents for details.

20. The Budget also mentions the ecoENERGY Retrofit – Homes grant. What is it and how can I obtain more information?

The ecoENERGY Retrofit – Homes grant is administered by Natural Resources Canada. The grant applies to a host of measures that reduce energy consumption and provide for a cleaner environment. Home and property owners could be eligible for federal grants of up to $5,000 to offset the cost of making energy efficiency improvements to their home or property. Most provinces and territories have complementary programs that offer additional financial assistance based on the results of the ecoENERGY Retrofit evaluation. For information on how you can qualify, please consult the ecoACTION Web site.

—

An online pamphlet will soon be available.

—

Planning on some home improvements? What project ideas do you have that fits in the $1000-$10,000 range? Does the HRTC give you the incentive to renovate this year?

My coworker Lisa recently introduced me to "KwikDeK" an easy and beautiful solution to ugly
concrete decks. Over the weekend, she helped a friend put it together in only about an hour
(130 sq ft) and her comment was that it was really easy "like clicking Lego" and cost about $400. 

Here's a description about the product:

Do you have a concrete patio, wood deck or garden path that is unsightly due
to cracking and deterioration? Do you wish you could repair or replace
it but this doesn't fit in your budget right now?  KwikDekT is the cosmetic,
cost-effective and EASY way to fix the problem. KwikDekT is made from genuine
exotic woods, backed with a unique plastic grid. Spacing between the wood
slats permit rain to flow through, while the plastic "feet" elevate the wood,
allowing airflow for drying.

and  more info on the company: KwikDek website. 

As a solution to fix up a condo for resale, it was an easy solution, making a big
difference from what the deck was like before:



It was available at The Home Depot, and here are some user comments on how they found the
product: Product Reviews link.

What? National Home Show
When? Feb. 20 - March 1, 2009!
Where? The Direct Energy Centre, Exhibition Place, 100 Princes’ Blvd.

The largest home show in Toronto is coming up next week with a plethora of home improvement and decor products, accessories, ideas, and celebrity guest appearances.

What to Expect at the Show: (info provided by www.NationalHomeShow.com - visit the official show site for more details)

* The Dream Home – Built by Probuilt by Michael Upshall and styled by Janette Ewen.

* Toronto Star Dream Gardens

* tySTYLE presented by Toshiba

* Colin and Justin, hosts of HGTV’s Home Heist (appearance courtesy of Penguin Books)

* Carson Arthur, host of HGTV’s Green Force

* Scott McGillivray, host of HGTV’s Income Property

* Cheryl Torrenueva, host of HGTV’s Home Heist and Restaurant Makeover

* Corbin Tomaszeski, appearing on HGTV’s Restaurant Makeover

* Igor Shamraychuk, appearing on HGTV’s Restaurant Makeover

Show Date & Hours

Friday, February 20th
11 am to 9pm

Saturday, February 21st
10am to 9pm

Sunday, February 22nd
10am to 6pm

Monday, February 23rd to Friday, February 27th
11 am to 9pm

Saturday, February 28th
10am to 9pm

Sunday, March 1st
10am to 6pm

Admission

Adults: $15.00 (at the door)
Adults: $12.00 (online)
Seniors (65+): $11.00
Seniors: $8.00 (online)
Youth 13 – 17 years: $11.00
Youth 13 – 17 years: $8.00 (online)
Children 12 and under: FREE

* Tickets can be purchased online or at the door. Buy online and save (use promo code:RENOVATION) !

Show Venue & Location

The Direct Energy Centre,
Exhibition Place,
100 Princes’ Blvd.
Toronto ON
416-263-3000

Website:

www.NationalHomeShow.com

Many people have been wondering about the home renovation tax credit and just what exactly it entails.  Information is now available on the Canadian government website, including a pamplet with further details.

Below is a break down of the main points of interest:

What is the time frame during which the credit can be applied?

“…after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009.”

For work completed and some necessarily obtained goods!  This credit is for new renovations and ongoing improvements on the residential structure itself, as well as the land it sits on.

What exactly can I get back?

It’s a 15%  credit which can be claimed on an amount which is more than $1000 and under $10,000. The maximum credit that you can obtain is $1350.

What Dwellings are eligible?

* houses

* cottages

* condo units

(must be inhabited or used by the owner)

What Types of expenses can be considered?

* projects (ie: finishing your basement or re-doing the kitchen)

* “associated expenses” (permits, rentals, labour, etc.)

Who is eligible to claim it?

“Taxpayers can claim the HRTC when filing their 2009 tax return…. Family members will be able to share the credit.”

Even though it’s been nearly a decade since I sat in a classroom, the fall season—the quickly approaching fall season, I should add—always makes me yearn for new projects, whether it’s taking a course or ripping apart a kitchen. After summer’s laissez-faire attitude (boat drinks, anyone?), there’s a feeling of “let’s get serious” in the air.

For many of us, this let’s-get-serious mood stems from an anticipation of snow. There are only so many home reno projects you can do once winter hits, and since fall is more moderate than Hades-heated July and August, it’s a great time to do one or two more outdoor projects, especially those tasks that can’t wait till next spring.

While crawling the web, I came across an article featuring HGTV handyman Steve Watson, host of Don’t Sweat It. In the article, Steve outlines the Top 5 things every homeowner needs to do before winter. Luckily, none of these jobs take more than a day to do. Here are his tips:

Leaky Roof: if you’ve got a leak, do not wait for winter before tackling the problem. Find the source of the leak by watching where it comes in during a rainstorm. Then, once the source is located, climb onto the roof and fix the spot; or, better still, hire a pro to do it for you. Because you’ve done the initial sourcing, the fix shouldn’t take long.

Clean the Gutters: unless you want to create an ice dam in winter, now is the perfect time to clean out your gutters so that the icy runoff has somewhere to run into. Of course, if your house is situated near trees that lose leaves come fall, you should save this job till late fall so that you can remove any littered leaves that can clog up your gutters. Also, don’t forget to check the downspouts. Or, as with the leaky roof, just get someone else to clean the gutters.

Check Window Seals: if you’ve opened up your windows in the summer, chances are there’s dirt and debris along the seal, which means the windows won’t properly seal in the winter and you’ll lose efficiency. But by simply cleaning the seals (and replacing any damaged spots) you’ll keep in the heat all winter long.

Winterize Your Pipes: take a peak under your house or in your basement for any pipes that need insulating or that require new insulation. Measure the length and then wrap it with pipe insulation. So simple, and yet such a pain to do in cold weather. Do it now.

Check the Deck: You’ve stored away the patio furniture, now do a quick once-over of the deck. Did you forget to treat it this summer? Do it now by giving the deck a solid clean (using a power-washer if you’ve got one) and then apply a coat of water-sealant. Done and done. You’re officially serious.

Last week, a 72-year-old man in Toronto was charged with 30 counts of mischief for slashing his neighbour’s tires. The man, head of the area’s neighbourhood watch, was trying to prove a point—no parking on the street—but instead, ended up proving a deeper truth: neighbours, like siblings, don’t often get along.
Mention a rotten neighbour and everyone can relate; we all know what it’s like to live next door to a noisy, thoughtless, destructive family, which is why rottenneighbor.com has become so popular.

The website is gaining traction as the newest way to vent against your neighbour and engage in name-calling, yelling and other adult activities. There are better, more thoughtful ways to deal with the people next door, but then again, when faced with unreasonableness, nothing beats a little venting.

Posts entitled “attack dog” and “get a life, nosey neighbor” litter the discussion boards, but don’t seem to result in much else. There was a time that borrowing a cup of sugar was the norm, but now it seems for this, like everything else, we need some help. eHow’s instructions may prove some guidance, but perhaps trying to talk to your neighbors can be just the key. Who knows, you may even find that you’re both driven crazy by the guy across the street.

We’ve come a long way from the garden gnome when it comes to garden sculptures. The iconic gnome, originally created from terracotta, was first made in Germany in the mid-1880s, as both decoration and to add a helping hand to gardeners by gardening at night when everyone else slept. This myth continued to spread for the next century, even spurning a new pastime, gnome hunting.

Continuing on the Home Improvement Blog’s theme of otherworldly phenomena, we’ve discovered that nowadays, the gnome isn’t the only creature of the night spreading soil and warding off evil spirits. For $90 you can protect your turf with a Zombie of Montclaire Moors Sculpture, designed by British artist Alan Dickinson.

The life-sized, grey-toned zombie appears to be clawing his way out of the dirt, his facial expression potent enough to scare away trespassers and priests alike.

Dickinson was commissioned by Toscano Design, a company specializing in both indoor and outdoor statues and sculptures. The Zombie piece is one of 36 so-called “extraordinary sculptures” sold by the Illinois company, which also includes pieces depicting Bigfoot, Easter Island, an alien and—for a mere $695—Revenge of the Great White Shark.

Of course, those resilient gnomes aren’t taking this garden invasion lying down. Expect revenge. No word yet on whether or not this will improve the lot of weed-ridden front yards throughout North America.

For the lucky ones, summertime means taking a vacation away from home for a week or two for some well-deserved R&R—actually, make mine a G&T. Weeks before a trip, pet owners call up their neighbour for feeding and walking duties; others hire house-sitters to come and water plants. Obvious stuff, really.

But why stop with plants and pets? The fine folks over at Charles & Hudson recently wrote about having your hardwood floors refinished while away on vacation. Instead of living through the messy, five-day refinishing process, why not have it done when you’re not around? Same goes with any type of flooring, whether it’s hardwood or you’re having wall-to-wall carpeting installed, putting down laminate.

Of course, you’d have to trust the contractors working while you’re away, so make sure you hire a reliable company.

Now that I think about it, many home-renovation projects suit this while-we’re-away timetable. Is your driveway looking tired? Have it repaved, resealed or bricked when you’re gone. Same goes with any exterior paths and patios.

What about your deck, does it need refinishing? No use having this done while you’re home barbecuing and entertaining guests. Speaking of backyard parties, who wants up a big whiff of paint fumes? Nobody, so if you’re home’s in need of an exterior paint job, get it done while you’re gone.

Of course, there’s something to be said for DIY projects or even keeping an eye on the contractors at work, but there’s a big difference between being watching and “living through” the job.

It used to be, find a weed, douse it with a toxin-laden chemical liquid, and bask in the glory of your pristine, green yard. Just don’t step on the cancer-causing grass.

A few years ago I was weeding a cottage yard—dumb, really; cottages should be rustic-looking—when I noticed the bottle of weed killer had a corrosive symbol. “Don’t touch this stuff!” it seemed to scream, “or your hand will melt away.” Which got me thinking: if it’s this bad, this corrosive, should I really be dousing the yard with it?

Luckily, most of us have climbed out of the Middle Ages when it comes to responsible gardening, helped by a growing number of municipal bylaws banning cosmetic pesticides. For most of us this means not stressing over a few rogue dandelions; for others, it means finding new ways to weed.

Of course, horticulturalists have been weeding for centuries, long before the likes of Roundup and other chemical killers, and they did just fine. Like cooking, the key to organic gardening is understanding your ingredients. For example, lemon juice is an effective killer because of its acidity; same goes for vinegar.

Still on the cooking comparison, organic gardening is as much about method as it is ingredients. Unlike synthetic products, these naturally acidic liquids are non-selective, meaning if you spray wildly, you will likely harm your plants and grass as well as the weeds, so be careful to direct your weeding nozzle at the weeds.

Your mowing method is also important. Forget creating a golfing green; high mowing—cutting off no more than a third of the grass—shades out sun-loving weeds and encourages root development tough enough to withstand summer heat waves. As a general rule, don’t cut any shorter than three inches.

Of course, there are a million green-gardening tips and techniques out there; the key is to find what works for your yard and your region. And really, even if a few weeds pop up here and there, is it so bad? Maybe the key isn’t total lawn domination, but a nice, gentle democracy.

This Sunday is Father’s Day, and while not every dad pines for tools, nothing says “I love you, Mr. Fix-it” quite like a new tool.

But rather than getting him a tool he won’t use or that’s beyond his abilities—hey, let’s not embarrass him on his one day to be king—look for a simple-yet-cool tool. Here are the Top 3 slightly ridiculous, over-the-top tools for Father’s Day:

Titanium Hammer: You’ve heard him mention “titanium” in reference to golf clubs, but this lightweight yet tough-as-nail material is not limited to sports equipment. This 15-ounce hammer feels as light as a squash racquet but packs a punch. Take a close look and you’ll notice a few special features, including a side nail puller and a magnetic nail starter. But the best part of this gift is you can tell him, “Honey, this hammer has 10 times less recoil than steel.” Go ahead, tell him that.

Solar Robotic Lawn Mower: When I was a younger I wanted an Omnibot 2000, a robotic servant that could carry drinks on a tray. While I never got one, I am pretty sure it was pure novelty anyway.

That said, robots have come a long way since ’83. Husqvarna, best known for chainsaws, recently unveiled its Automower, a fully automatic mower that operates itself by following a path set out by an invisible wire. What’s more, this mower runs on a rechargeable, solar-powered battery; when the mower require more power, it simply drives itself to the charger and basks in the sun till it’s time to get back to work.

SawStop Table Saw: There’s nothing funny about losing a finger to a saw blade, and yet finger-cutting accidents are common whether your dad’s a pro or Mr. Butterfingers. Luckily, there is a solution in SawStop, an electronic detection system that detects human flesh in a millisecond, stopping the blade as soon as contact is made. The website features a video showing what happens when a hot dog hits the blade. Now that’s progress.