2009 special tax incentives

Make sure you get every last deduction and credit available to you. In 2009 the government announced some temporary tax incentives for individuals and businesses. Some of the key ones include 100% deduction for computers purchased during the year for businesses, First Time Home Buyer’s Tax Credit, and the Home Renovation Tax Credit. A First Time Home Buyer can also be someone who has not owned a property for at least five years. If the person is common law or married, then the other spouse also must not have owned a property for at least five years. The Home Renovation Tax Credit was also new to 2009, and now it’s possible that we’ll never see it again. Ensure that you have receipts for the work that you’ve had done, and that it is not just some money paid to a family member that has helped you out. It should be legitimate work done by an actual company, preferably with a GST number as you are required to put all this information into the tax return. If you have less than $1,000 in renovations to claim you will not receive any tax credit, and remember that the maximum is $10,000. Therefore you are only claiming the portion between $1,000 and $10,000 ($9,000 total claim) at a 15% rate, thus the maximum Home Renovation Tax Credit for 2009 is $1,350.