Tax Credit

Tax Credit to be taken advantage of for the first time home buyers

Tax Credit for 2009 based on the new budget with questions and answers as listed:

1. What is the Home Buyers' Tax Credit (HBTC)?

For 2009 and subsequent years, the budget proposes to introduce 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., closing after this date).

2. How is the new HBTC calculated?

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000.

For 2009, the credit will be $750.

3. Who is eligible for the HBTC?

An individual will qualify for the HBTC if:

• they acquire a qualifying home; and
• neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.

If you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first time home buyer.

However, the home must be acquired to enable the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.

Tax Credit of $750 works well for first time buyers

Tax Cuts

Tax Cuts for Homeowners

Tax Cuts that may benefit you and your family

The Home Renovation Tax Credit means savings up to $1,350 on renovations completed before February 2010


Temporary, Timely and Targeted Stimulus

The HRTC will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009.

The temporary nature of the tax credit will provide an immediate incentive for Canadians to undertake new renovations or accelerate planned projects.

The HRTC can be claimed for renovations and enduring alterations to a dwelling, or the land on which it sits.


How the HRTC Will Work

The 15-per-cent tax credit may be claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350.

The credit can be claimed on eligible expenditures incurred on one or more of an individual’s eligible dwellings.

Properties eligible for the HRTC include houses, cottages and condominium units that are owned for personal use.

Renovation costs for projects such as finishing a basement or re-modelling a kitchen will be eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals and incidental expenses.

Routine repairs and maintenance will not qualify for the tax credit. Nor will the cost of purchasing furniture, appliances, audio-visual electronics or construction equipment

Tax Cuts for home renovations are gaining popularity across Canada

Tax Incentive

A new government tax incentive means now is the time to buy and upgrade your workplace technology.

Tax incentive in Budget 2009 increases the CCA rate to 100 per cent (100%) for computers, hardwares and systems software acquired after January 27, 2009 and before February 1, 2011.


This budget is temporary for two years only that allows businesses to fully write off computer investments.

Chapter 3

Action to Support Businesses and Communities

Providing Assistance to Businesses in All Sectors to Invest in Computers

Budget 2009 proposes a temporary 100-per-cent CCA rate for computer hardware and systems software acquired after January 27, 2009 and before February 1, 2011.

In addition, the rule that restricts CCA deductions to one-half of the CCA write-off otherwise available in the first year will not apply to these computers.

This temporary measure will allow taxpayers to fully expense their investment in computers in one year.

The measure will provide stimulus by assisting businesses to increase or accelerate investment in computers.

It will also contribute to boosting Canada's productivity through the faster adoption of newer technology.

Businesses in all sectors of the economy, including the service sector, will benefit from this incentive.

Reminder of the Old Tax Rules: > $2,750 write off in the first year > annual diminishing-balance deductions afterward
New tax rules: > $10,000 tax write off immediately


Tax incentive for this budget is great and business must take advantage before it expires Ferbuary 1, 2011