PERSONAL INCOME TAX CHANGES IN 2009 for home owners & home buyers

New tax laws are added every year and tax laws change every year.  Every year, the Government of Canada produces a budget, and along with this budget comes new tax laws and changes.  Also, other changes and amendments happen throughout the year.  As a diligent tax payer, it is always good to know the main changes that are happening. 

These are some personal income tax changes this 2009 for Home Owners & Home Buyers. 

·         Home Renovation Tax Credit (HRTC) –

The HRTC will be a non-refundable tax credit of 15% of eligible expenditures on home renovations made in respect of eligible buildings.  The credit will apply to expenditures over $1,000, but no more than $10,000, with a maximum credit amount of $1,350 per family.

·         First-time Home Buyers Tax Credit –

A new non-refundable tax credit is proposed, based on an amount of $5,000 for first-time home buyers who acquire a qualifying home after January 27, 20093

·         Home Buyers Plan (HBP)

The HBP allows an individual to borrow from an RRSP to buy or build a home, without paying tax on the amount withdrawn.  It is proposed to increase the HBP withdrawal limit from $20,000 to $25,000.

There are a few more changes to the Personal Income Tax which I will discuss next week.  Stay tuned!