Wednesday, February 25, 2009

Tax credits for roof costs

Many owners at last night's Special General Meeting were concerned about paying a large assesment that the new roof will require and some remedies were suggested.

It looks like IvyLea owners may be eligible for the new Home Renovation Tax Credit. Here's what I read on their FAQ page:

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.

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%).

So, if you're in for $5000 and the credit is 15% you can expect $750 back from the government. Now, don't get your hopes up, I'm not an an accountant or tax lawyer!

Another remedy mentioned at the meeting was a grant from Canada Mortgage and Housing Corporation for low income households ( Homeowner Residential Rehabilitation Assistance Program / Homeowner RRAP) But it looks like that money is not available. When I "pre-applied" the response came back:
Thank you for your interest in CMHC’s renovation programs. Please be advised, based on the postal code and renovation program you entered, current program funding has been fully allocated.
If there were RRAP funds available, the site goes on to say that:

You are eligible to apply for the RRAP for Homeowners program if:

  • The total annual gross (before taxes) income of all household members 16 years and over is less than or equal to: $32,500
  • The value of your house is less than or equal to: $525,000
  • You meet all program eligibility requirements before applying.
  • To apply to the program, complete the Homeowner RRAP application form.
So, keep your eyes open for other grants and opportunities to help defray costs!

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