Reminder: Six months left on home tax creditsRemember that Canadians have until February 1, 2010 to claim two important tax credits introduced in the 2009 federal budget.
The First-Time Home Buyer's Tax Credit is designed to help offset legal fees and land-transfer taxes. A 15% tax credit applies on expenditures of up to $5,000, with a maximum tax savings of $750. The new withdrawal limit for the Home Buyers' Plan, which allows tax-free withdrawals from RRSPs for the purpose of buying that first home, jumps to $25,000, up from $20,000. The new Home Renovation Tax Credit covers projects carried out between January 27, 2009 and February 1, 2010. The HRTC can be claimed for renovations and lasting alterations to a dwelling, or the land on which it sits. 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%).
Source: Pro Link Mortgage