Last-minute rush to nail home renovation tax credit
February 1, 2010
Jennifer Yang
STAFF REPORTER
Hardware stores were bustling this weekend, as homeowners scrambled to meet the deadline for the federal government's home renovation tax credit.
Down-to-the-wire shoppers descended upon big-box stores, hoping to squeeze in some last-minute purchases before Sunday night's deadline for the Home Renovation Tax Credit program.
Under the federal scheme, homeowners are eligible for a tax credit on renovations to their home, condo or cottage, as long as the materials were purchased and the work performed between Jan. 27, 2009 and Feb. 1, 2010.
At the Home Depot at St. Clair Ave. W. and Keele St. on Sunday, business was probably about 25 per cent busier than usual, said assistant store manager Josip Tadic.
Among the homeowners wandering the aisles were people like Ron Saragosa, who was buying lumber for his porch.
"I'm a little bit of a tax nut," laughed Saragosa, a 46-year-old lab technician. "I like the money back, for some reason."
When the tax-credit program was first announced, Saragosa was eager to take full advantage and began making improvements to his 90-year-old house over the year. But as he sat down Saturday to review his expenditures, he realized he could still spend $600 more.
Under the program, the 15 per cent tax credit applies to eligible expenditures between $1,000 and $10,000. Thanks to his last-minute shopping trip, Saragosa can now look forward to a $1,350 tax credit on his 2009 return, the maximum allowed under the program.
Some homeowners who didn't make the deadline were also trying to take advantage of the government program, according to one contractor in Toronto.
She was approached by a new client Saturday, who asked if she was open to backdating some receipts to qualify for the tax credit.
"That's something I have to think about ... realistically I don't want to get involved. You're just asking for trouble," said the contractor, who asked that her name not be used. "But I'm sure there will be a lot of contractors that will do that ... they want the work."
Toronto Star