Home Renovation Tax Credit - New Home

[alsinha]

Just wondering if any of you guys in the process of building a new home have had any luck with getting your builder to provide you with a receipt for all the eligible expenses that would qualify under the Home Renovation Tax Credit for 2009?

[sputnik]

Good luck with your tax fraud attempt.

http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/hmwnr/hrtc/lgbl-xpns-eng.html


Examples of ineligible expenses

* Furniture, household appliances, and electronic home-entertainment devices
* Purchasing of tools
* Carpet cleaning
* House cleaning
* Maintenance contracts (e.g., furnace cleaning, snow removal, lawn care, and pool cleaning)
* Financing costs
* Amount paid as part of the purchase of your new house, including “upgrades”
* Expenses to acquire goods that have been previously used or leased by you or an eligible family member (e.g., hot water tank)
* Expenses incurred to the rental and/or business part of an eligible dwelling

[masoncgy]

hahahaha... are you serious, alshinha?!

[alsinha]

LOL. Not sure how i was attempting a "tax fraud", but a builder representative explained to me that I was ineligible for this claim as I dont get possession of my new home before Feb 1st, and as such its the builders's property. People who get possession before the deadline can actually claim for this tax credit.

[eblend]

It isn't home renovation, it is a new build, maybe you are confusing it with First Time home owner credit which expires by the same time if I am not mistaken? But seriously, it is fraud if you get receipts and try to claim them, since you are not renovating your house at all yet trying to get some money back from the government

[masoncgy]

Originally posted by alsinha
LOL. Not sure how i was attempting a "tax fraud", but a builder representative explained to me that I was ineligible for this claim as I dont get possession of my new home before Feb 1st, and as such its the builders's property. People who get possession before the deadline can actually claim for this tax credit.

Uhhh... no they can't actually. Whoever told you this is absolutely 100% wrong.

Your final purchase price INCLUDES all upgrades, so you are paying the builder the full amount for the entire house as ordered to your specifications. You don't pay for upgrades separately!

[quazimoto]

If you want to be really really smart. Go to home depot and buy enough dry-core sub flooring for your basement and then you can get the tax credit but it's still money out of pocket. This is exactly what we did since we required 1500 SQ feet of drycore which was around $3000.

I'm not the type of person that enjoys sticking carpet on cement. I like the idea of a basement that has engineered american cherry hardwood flooring. I know for fact you can't use it since I've spoken with people at CRA as well as 2 other Beattie reps that confirmed the same.

[masoncgy]

The only credit you are eligible for with a new build is the GST rebate, which is based on the purchase price of the home.

You are eligible for the full GST rebate (approx 1.5%) on a new build priced at $350K or less... and between $350K and $450K you are eligible for a partial rebate with that amount declining as you get closer to $450K. Over $450K you are not eligible for this rebate at all.

[JAYMEZ]

Originally posted by masoncgy
The only credit you are eligible for with a new build is the GST rebate, which is based on the purchase price of the home.

You are eligible for the full GST rebate (approx 1.5%) on a new build priced at $350K or less... and between $350K and $450K you are eligible for a partial rebate with that amount declining as you get closer to $450K. Over $450K you are not eligible for this rebate at all.

Damnit.. Why did I go over with upgrades LOL.. 450k is the for sure cut off?

[hampstor]

I wonder what kind of audits they have to prevent someone who bought 10k worth of ... hardwood or carpet, then returns it the next day just so they have a receipt.

[alsinha]

Originally posted by quazimoto
I know for fact you can't use it since I've spoken with people at CRA as well as 2 other Beattie reps that confirmed the same.

Thanks, That is pretty much the information I was looking for.
And I wont be surprised if what the area managed told me is way off-mark as she hasnt been the most reliable source of information in the last 6 months. I was just curious to know if I'd be eligible and what the process would entail...
@masoncgy, thanks for the heads up on the GST rebate.

[nickyh]

Would you be elligable to claim the amount over and above your upgrade allowance?

Eg: lighting allowance of $2000 but you spend $2500? Would you be able to claim the difference of $500 that had to be paid directly to the supplier?

[quazimoto]

No you wouldn't because you aren't....


"Renovating"

You are simply buying a new home. The tax credit was implemented to get canadians to fix their current aged homes many of which need it.

As I said go out and buy the dry core squares for your basement. You are going to want/need them in the future anyways and they are considered as flooring. It's just subfloor for your basement.

Is it worth getting caught over a $1,500 credit.

Also any reputable builder writes the GST rebate into the purchase agreement so you really dont even need to inquire regarding this. You will be required to sign a form when you goto the builders lawyer which allows for the builder to apply for the credit as they have already given you the credit in your purchase agreement.

[schmooot]

btw that "home renovation tax credit" hasn't actually been approved by parliament yet. Just a note to keep in the back of your mind...if they squash it for some reason there are going to be a lot of pissed off broke people in the next couple months...the stores are really pushing something that isn't even set in stone yet

[hampstor]

Originally posted by nickyh
Would you be elligable to claim the amount over and above your upgrade allowance?

Eg: lighting allowance of $2000 but you spend $2500? Would you be able to claim the difference of $500 that had to be paid directly to the supplier?

You probably won't be able to claim it thru HRTC .. you could always call CRA and ask though.


Originally posted by schmooot
btw that "home renovation tax credit" hasn't actually been approved by parliament yet. Just a note to keep in the back of your mind...if they squash it for some reason there are going to be a lot of pissed off broke people in the next couple months...the stores are really pushing something that isn't even set in stone yet

I'm pretty sure it's approved under Canada's Economic Action Plan:

http://www.actionplan.gc.ca/eng/index.asp

[masoncgy]

Originally posted by JAYMEZ
Damnit.. Why did I go over with upgrades LOL.. 450k is the for sure cut off?

It sure is, my friend. ;)

The maximum GST rebate available is with a final purchase price of $350K (all in) with the rebate amount being $6,300. This amount gradually gets lower as you proceed to $450K, where the rebate is zero.

There are transitional rebates available for those people who have homes purchased at 6% but took possession when the GST was lowered to 5%... but that change happened awhile ago, so I don't think there are many people who would still qualify for that particular 'transitional' rebate.

[nickyh]

Originally posted by quazimoto
No you wouldn't because you aren't....


"Renovating"

You are simply buying a new home. The tax credit was implemented to get canadians to fix their current aged homes many of which need it.



So while you can buy blinds for a new home (a fixture) and those qualify for the HRTC, lights (also considered a "fixture") are not?

Guess I'll be calling CRA.

Edit: Found this
http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/hmwnr/hrtc/lgbl-xpns-eng.html

Basically, from how I read this, allowed.
-Fixtures - blinds, shades, shutters, lights, ceiling fans, etc.

[Supa Dexta]

I believe the HBTC is still in affect..

1. What is the home buyers' tax credit (HBTC)?

For 2009 and subsequent years, the HBTC is a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009 (i.e., generally means that the closing is after this date).