The Home Renovation Tax Credit-It’s Better Then You Think

With the spring and summer seasons fast approaching, at least in most parts of the country, many Canadians are preparing for spring clean-up, kids report cards, and that annual home renovation project. While the downturn in the economy may get some nervous about spending their hard earned dollars on fixing up the home front, the Canadian government has made it a bit easier on families and our wallets by providing tax relief with the new home renovation tax credit (HRTC).

The 15% home renovation tax credit may be applied to renovation costs for projects such as finishing your basement, re-modeling your kitchen or even painting your house! You must spend at least $1000 to take advantage of this great tax break.

Now, I have heard many people balk at the $1350 tax credit maximum as a mere ?drop in the bucket?. It very well may be if you are hiring a contractor to do the work for you. But, we are Canadians, and these are tough times. Surely we can do it ourselves. Right?

Do it yourself centre?s, like Home Depot, have been telling us for years that ?we can do it? and they are obviously ?willing to help.? You just need an idea, a plan and maybe a long week-end to get started.

While the tax break will help, it is very important to note that not all expenditures involving your project are covered under the HRTC. Purchasing the tools you may need to get the job done is not covered but don?t worry. Renting anything you need for your project is covered and you probably don?t really need a circular saw or a paint sprayer taking up more room in your garage anyways. An excellent resource to help you find the tools you need to rent is rentcharlie.com (http://www.rentcharlie.com).Not only can you find the rentals you need but also a local rental company that carries them. Renting the tools you need is also a great idea because you can get expert advice from the rental store owner on what tools to use and possibly a tip or two.

So Canada, put on your work boots, carpenter pants and tool belt. Plan a simple re-modeling project and take advantage of the home renovation tax credit. You can do it and the HRTC and rentcharlie.com can help.