Condo Upgrades

[cestgenial]

Home Renovation Tax Credit

Help!

I am curious if anyone else knows anything about the Federal government's home renovation tax credit. You can get back up to 1,350 dollars in tax credits by spending over 10,000 dollars with purchases made before Feb. 1st, 2010. My real estate agent seems to think that the upgrades I recently paid for would be eligible except for the fact that I will not technically be the owner of my condo during that time. My unit probably won't close until Summer/early Fall 2010. Yet I will have paid for a lot more than 10,000 dollars in upgrades during the time the home renovation tax credit can be applied. I guess I'll have to ask a tax specialist about this. Any ideas?

 

[AKS]

Help!

I am curious if anyone else knows anything about the Federal government's home renovation tax credit. You can get back up to 1,350 dollars in tax credits by spending over 10,000 dollars with purchases made before Feb. 1st, 2010. My real estate agent seems to think that the upgrades I recently paid for would be eligible except for the fact that I will not technically be the owner of my condo during that time. My unit probably won't close until Summer/early Fall 2010. Yet I will have paid for a lot more than 10,000 dollars in upgrades during the time the home renovation tax credit can be applied. I guess I'll have to ask a tax specialist about this. Any ideas?

I doubt you will get the credit. First you need tax receipts. Second, you don't own the unit yet. Third, it's for a renovation. If it's not built yet, how is it a renovation? I think renovation means fixing up a place that is built already?

 

[simuls]

As stated above it's a new build not a renovation so it doesn't count under the rebate program.

 

[cdr108]

typical incorrect information provided by RE agents for all the above reasons.

 

[cmystikal]

I doubt you will get the credit. First you need tax receipts. Second, you don't own the unit yet. Third, it's for a renovation. If it's not built yet, how is it a renovation? I think renovation means fixing up a place that is built already?

You don't actually need receipts to claim the tax credit, but you do need to own the property. You won't own the property until the building is registered. You only need receipts if you get audited but the government isn't asking for receipts to claim the tax credit.

 

[AKS]

You don't actually need receipts to claim the tax credit, but you do need to own the property. You won't own the property until the building is registered. You only need receipts if you get audited but the government isn't asking for receipts to claim the tax credit.

if people don't need receipts, then people can just go the black market route and get it done cheaper and under the counter.

 

[Jin-N-Juice]

You don't actually need receipts to claim the tax credit, but you do need to own the property. You won't own the property until the building is registered. You only need receipts if you get audited but the government isn't asking for receipts to claim the tax credit.

If you get audited, and they find that you claimed a tax credit you were not entitled to, you will have to pay back the tax owing plus penalties and interest. Not worth it.

 

[w.ll.am]

Actually.... I think some aspects of condo upgrades may be eligible. The government website has a list of eligible and ineligible items. As long as you fit within the list you are eligible.

http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/hmwnr/hrtc/lgbl-xpns-eng.html

The expenses are eligible when they are incurred in relation to renovations or alterations to an eligible dwelling (or the land that forms part of the eligible dwelling) and are permanent in nature. As a general rule, if the item you purchase will not become a permanent part of your home or property, it is not eligible.

So technically it's not a traditional renovation but it could be argued that it's no different from taking the standard items and then having the renovation done. As long as you have all the paperwork and you have the proper reciepts it looks like it might fly.

It's important to note that upgrades are not built into your condo price. They are payable on closing. So the upgrades are handled separately from the condo itself which could also help qualify the upgrades for the rebate.

I would of course check with a reputable accountant.

 

[simuls]

It's important to note that upgrades are not built into your condo price. They are payable on closing. So the upgrades are handled separately from the condo itself which could also help qualify the upgrades for the rebate.

I would of course check with a reputable accountant.

That would be great if upgrades were eligible, but I don't know of any builder who charges for upgrades on closing. They're almost always payable immediately, on the spot, at the design meeting (for condos at least). This would seem to negate any possible rebate because you're paying for an upgrade BEFORE you own the home (which would still be the case if you paid at closing).

 

[w.ll.am]

That would be great if upgrades were eligible, but I don't know of any builder who charges for upgrades on closing. They're almost always payable immediately, on the spot, at the design meeting (for condos at least). This would seem to negate any possible rebate because you're paying for an upgrade BEFORE you own the home (which would still be the case if you paid at closing).

That's interesting... On reading even renovation work done during the phantom mortgage period wouldn't be eligible as you don't own the home at that point either.

I wonder if there's a more thorough document to look at somewhere.

 

[MattR]

I was wondering if anyone can shed some light on upgrade any info you may have on pricing for floor upgrades...

Currently, as it stands, I have strip laminate hardwood as standard throughout my loft.. While I do like some of the abailable colors, I really like the level 1 upgrade to engineered hardwood because that color is more suited to what I am going for...

Anyways, in your expericnes, what kind of price range will I be looking at to upgrade to a level 1 floor either ballpark total or price per sq ft... My unit is an 870sq ft loft..

Thanks
Matt

 

[simuls]

I don't think there's such a thing as a ballpark figure for what you're asking. Some builders only offer 1 or 2 levels of upgrade, some offer 4 and it depends on how good your "standard" floor is. Inevitably though, it almost always cheaper to do it after the fact, but some people don't want that hassle. Builder's markups on upgrades are usually between 200-400%. I'd suggest going to a floor store or even IKEA - they have great laminates that are only $1.49/foot = $1300 for the cost part.

 

[cdr108]

I was wondering if anyone can shed some light on upgrade any info you may have on pricing for floor upgrades...

Currently, as it stands, I have strip laminate hardwood as standard throughout my loft.. While I do like some of the abailable colors, I really like the level 1 upgrade to engineered hardwood because that color is more suited to what I am going for...

Anyways, in your expericnes, what kind of price range will I be looking at to upgrade to a level 1 floor either ballpark total or price per sq ft... My unit is an 870sq ft loft..

Thanks
Matt

i would estimate $7.50 - 10.00 PSF.

 

[MattR]

Well if thats the case then.. It dosn't sound like to massive of a markup... Looking at local retailers the floor they're offering is a little over 6$ per sq ft to purchase... I guess we shal have to wait and see...

 

[simuls]

Remember when calculating how much the markup is to not just look at how much the new floor costs but how much the standard floor was worth. If the new floor is $6/ft, and the standard is $4/ft (and already includes labour!) then the difference is only $2. If they're charging 10, that's a 500% markup as their labour costs don't change.