5 “End of the Year” Tax Tips

1. Fix up the house. The deadline for the home renovation tax credit (HRTC) is coming up quickly. It’s a 15 percent tax credit and applies to purchases between $1,000-$10,000 for a maximum of $1,350. Materials must be purchased in 2009 but can be installed in 2010, but only labor completed in 2009 may be counted.
    
2. 2.Contribute to your children’s education. If your child or grandchild doesn’t have a Registered Education Savings Plan (RESP) and they turned 15 in 2009, the last chance for them to get in is December 31, 2009. By contributing at least $2,000 this year, they will be able to collect a 20 percent Canada Education Savings Grant for 2009 and be eligible for 2010 and 2011. Missing this year’s deadline will make them ineligible for the next two years as well.
3. Donate. Donations must be made by December 31 in order to get a tax receipt for 2009.
4. Contribute to a registered disability savings plan. This tax-deferred plan is open to residents that are eligible for the Disability Tax Credit, their parents, and other eligible contributors. A maximum of $200,000 can be deposited and there are no annual limits.  Contributions in 2009 may be eligible for the 2009 Canada Disability Savings Grant and the Canada Disability Savings Bond.
5. Splurge on office furniture. Even if you purchase at the end of the year, you can still take half a year’s depreciation on new office equipment and furniture for small business owners and self-employed. Computer equipment purchased between January 27, 2009 and January 30, 2011, can be written off 100% in the year it is purchased.

Even better, you can combine the above HRTC with existing government rebates applicable to energy efficient home improvements to save even more money!!

We are excited to share with you the following refinance tips to help grow your business. Let’s work towards a successful 2009! Read on…

Refinancing will help your pocketbook. What do I mean?

As part of the 2009 budget you may qualify for the Home Renovation Tax Credit (HRTC) of up to $1,350 for renovations completed within the next 12 months.
Did you know that you can obtain a 10% rebate on the mortgage insurance premium if you refinances your home to make it more energy efficient? Plus, the extended amortization without surcharge may be available to you. Note: this rebate also applies to folks who purchase an energy efficient home.
In addition to the 10% rebate, you may be eligible for additional federal and provincial grants of up to $10,000 under the Canada ecoEnergy Retrofit grant.

Additional benefits of the above programs:

Simple, energy efficient improvements are attractive because they offer lower monthly utility bills.
This translates into income for you, allowing you to free up income to qualify or buy a more expensive home increasing your borrowing power.
You’ll increase the resale value of your home as an official EnerGuide label proves you’ve done the work.

So give us a call here at the Great Life Team and let us know how we can help you take advantage of this tax credit. (416)445-8855 Ask for Aeriol.