Home Renovation Tax Credit

Tax tip

Homeowners, don't miss the deadline!

Did you know…
The non-refundable Home Renovation Tax Credit (HRTC) is based on eligible expenses for work performed or goods acquired after January 27, 2009, and before February 1, 2010, in respect of an eligible dwelling, pursuant to an agreement entered into after January 27, 2009.
Canadian homeowners should be aware of the deadline to ensure they are able to claim the non-refundable tax credit of up to $1,350 for their home renovation or alteration. Eligible expenses for goods acquired during this period, even if they are installed after January 2010, will still qualify. If an eligible expense involves work performed by a contractor or a third party, and the work is not completed by the end of the eligible period, only the portion that is completed before February 1, 2010 will qualify even if a payment has been made.
In addition, there is no requirement that homeowners pay the amount in full before the deadline. For example, if you are billed by a contractor for goods acquired and work performed before the deadline and you do not pay the bill until after the deadline, your expenses would still be eligible for the HRTC provided that you met all the other requirements.
Non-refundable tax credit
It is also important to note that the HRTC is non-refundable and will reduce your federal income tax, if you have any. However, if the total of your non-refundable tax credits is more than your federal income tax, you will not receive a refund for the difference.  
Supporting documentation
To qualify, the expenses you claim for the HRTC must be supported by acceptable documentation, such as agreements, invoices, and receipts, and must clearly identify the type and quantity of goods purchased or services provided, including, but not limited to, the following information, as applicable:

• information that clearly identifies the vendor/contractor, their business address and 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;
• proof of payment.  Receipts or invoices must indicate paid or be accompanied by other proof of payment, such as a credit card slip or cancelled cheque; and
• a statement from the co-operative housing corporation or condominium corporation (or, for civil law, a syndicate of co-owners) signed by an authorized individual identifying:
  • the amounts incurred for the renovation or the alteration work;
  • as a condominium owner, your portion of these expenses if the work is performed on common areas;
  • information that clearly identifies the vendor/contractor, their business address and, if applicable, their GST/HST registration number; and
  • a description of the work performed and the dates when the work or services were performed.

For more information on the HRTC and eligible expenditures, visit the Canada Revenue Agency Web site at cra.gc.ca/hrtc or call CRA's individual income tax enquiries service at 1-877-959-1-CRA (1-877-959-1272).

How To Clean A Woodstove

Wood stoves are becoming more popular with homeowners as an economical alternative to the more conventional means of heating. A wood stove also adds aesthetic value to a home. Today's wood stoves are safer and more energy efficient than the old pot-bellied models of the past. They are nearly smokeless, produce small amounts of ash and use less firewood. Cleaning your wood stove regularly keeps it operating safely and effectively. Learn how to clean your wood stove.

Difficulty: Moderate

Instructions

Things You'll Need:

• Fireplace shovel
• Wire brush
• Metal container or bucket with lid
• Ladder
• Dust mask
• Gloves
• Flashlight

1. Find your wood stove's catalytic combustor located between the fire and stovepipes. Look for any ash that may have amassed there from the burning wood.
   
2. Use a small wire brush to remove the ash. This should be done every 2 months. Remove the combustor, according to the manufacturer's instructions.
   
3. Remove ashes from the stove with a small fireplace shovel. Put them into a metal container or bucket with a tight-fitting cover. Leave the container outdoors or on a non-combustible surface overnight or until the ashes have cooled before disposing. Cooled ashes can be used on flowerbeds, gardens and compost piles.
   
4. Inspect the outside of the stovepipe and remove any surrounding debris. Scrape the sides of it with a proper fitting wire brush. Place the brush inside the pipe and move it in an up-and-down motion to get rid of any creosote that may have accumulated. Creosote is the yellow, rancid-smelling, oily matter produced when the gases emitted from the burning wood cool to less than 250 degrees F and turn to liquid.
   
5. Shine a flashlight into the pipe to be sure all the creosote has been removed. If left inside the stovepipe, creosote can catch fire. Use a fireplace shovel to get rid of any soot or creosote that may have fallen into the stove.
   
6. Clean the inside of the wood stove's window with fine steel wool once the glass is cool to the touch. If using chemical cleaners, check that the glass is dry before burning again so smoke or dirt is not ensnared in the dampness on the glass.
   
7. If you've done all this and you still don't feel like it's clean enough, call a chimney sweep.
   

Stop the HST!

 Stop the HST – Cost of buying, owning and selling a home to go up by 8%

Earlier this week, the Government of Ontario formally launched its latest assault on homeowners, purchasers and sellers with the introduction of legislation to harmonize the provincial sales tax and goods and services tax.

Homebuyers and sellers will pay 8 per cent more on legal fees, appraisals, real estate commissions, home inspection fees, and moving costs, adding about $1,500 in new taxes to the average residential real estate transaction in Ontario.

For homeowners the HST will also add hundreds of dollars in additional tax on utility bills (gas, electricity and home heating fuel), on home renovation labour, the cost of lawn upkeep or landscaping and the cost of snow removal.

Please help Ontario REALTORS® fight this tax. In less than 30 seconds you can send an email to your MPP asking them to vote against sales tax harmonization legislation, by clicking here: http://bit.ly/stopthehst

How To Safely Keep Warm Burning Wood

There’s a lot to recommend about heating with wood. I’ve enjoyed wood heat over the years. Sitting by a warm fire can be very relaxing and is often the social focal point of the home during the colder months. Burning wood will also cost you a lot less money than other forms of heat and it’s much easier to install. However, there are also things you need to be aware of if you’re going to burn wood safely and cleanly.

When you heat with wood, you can’t neglect cleaning your chimney or you’ll create a fire hazard for yourself before very long. Every year, residue in the chimney and flue must be cleaned out. If you don’t want to hire someone, you can do it yourself as long as you do it thoroughly. Hardware stores have devices you can use to pull through your chimney that will scrub it. However, if you encounter blockage you can’t break through don’t use your stove until blockage been cleared.

Always burn hard woods and be sure the wood you burn isn’t green. When wood is first cut, it’s high in moisture content and it needs to age or it won’t burn. Stack it where it can dry undisturbed until it’s ready to be burned. I don’t burn any wood that’s less than a year old. Wood that isn’t sufficiently aged will be hard to light, it won’t deliver much heat value and it will tend to leave creosote behind. 

What sort of stove do you own? If you want to get value out of the wood you burn, you need to use an air tight stove, preferably one that’s been EPA certified. It will use less wood than a stove that isn’t air tight and it will burn cleaner as well. When you burn less wood, you save both money and labor, so making an investment in an air tight stove will pay you back with greater value. I know that personally.

Never burn garbage in your stove or anything treated with substances that release toxins into the air. Once something has been treated with chemicals, including wood that’s been pressure-treated or painted, it should not be burned in a stove. Take it to your local dump and talk with the person there about how to dispose of it properly.

Burning wood requires more attention than other forms of heat, so it’s tempting with wood to damp down your stove so it will burn longer. However, whenever you damp down a stove you’re encouraging an incomplete burn. When wood isn’t completely burned, it smolders and leaves a sticky residue called creosote that clings to the inside of your chimney and it’s very flammable. Build up enough creosote in your chimney and you’ll have a chimney fire. To avoid this outcome, don’t damp down your stove very often or buy a store with a catalytic converter in it. Catalytic converters will protect your chimney from creosote buildup and they’ll remove particulates that pollute the air.

If you want to save money burning cord wood, buy your wood green a year ahead of when you’re going to use it. The difference in price between green and aged wood is considerable and you can save a lot of money this way

There’s a lot of talk about pellet stoves now. Wood pellets are a byproduct of saw mill waste so they don’t require cutting down fresh trees. Using pellets also takes less effort than splitting cord wood. The pellets burn hot and very efficiently. However, pellet stoves and fireplace inserts that burn pellets are a lot more expensive than a very good, air tight stove that burns cord wood.

I hope this was useful information.  Please check back next week to see how to properly clean out your wood stove.

Getting Your Home Ready to Sell - Home Sweet Home Improvement

Whether you are planning to add more rooms, upgrade your kitchen or want to put your home on the market, here are some essential home improvement tips to increase the value of your home.



Kitchen Makeover
The kitchen is the most popular room in the house to remodel. Most in the industry will tell you money spent upgrading a kitchen produces the highest return on investment. Hot makeover trends include adding dual sinks, cooking stations, bigger dishwashers, under-cabinet lighting, warming ovens and wine coolers. Also consider upgrading all major appliances.



Bathroom Fixer-Upper
Upgrading a bathroom is another sound choice and will often provide a significant return on investment, as large bathrooms typically top the list for those seeking a new home. Adding skylights, sunken whirlpool baths, or larger showers are other attractive selling features.



Cosmetic Touch-Ups
A paint job, new double-paned windows, or new carpeting will increase the price of a house virtually dollar-for-dollar. It is important to make sure your home standards are in-line with other houses in the neighborhood. Neutral colors and no clutter make a world of difference! It is vital to look after minor problems such as a leaky faucet or a loose cabinet to guarantee your house doesn't experience any long-term damage. As soon as you notice a problem, fix it sooner than later to help avoid a larger expense down the road.



Home Improvement Professionals For Hire
Whether you need an architect, gardener, interior designer or contractor, it is always important to do a background check prior to hiring a professional. Get references from family or friends and then interview your selection. Important qualities to look for are trust and experience, not initial price.