Home Owner Tax Credit

Home Owner Tax Credit: Time Crisis

Home owner tax credit for first-time buyers— so many Americans are happy about it. Or are they?

A friend of mine bought a new house last December 2008. It was during the period when the market was just about to turn, and house prices were still at an all-time high. He tried applying for US$8,000 tax credit, but they rejected his application. Apparently, he only qualified for the older US$7,500 tax credit. He believes this is unfair.

Why is it that those who bought houses at really high prices last year fail to qualify for the tax credit when those who buy houses now that the prices are at an all-time low do? Shouldn’t it be the opposite

Home Owner Tax Credit: Working Hard for Nothing

My cousin, who just recently saved enough money, bought her new home this February. She tried applying for the 2009 tax credit, but they rejected her application. Apparently, homes bought from relatives do not qualify for the tax incentive.

Do you see how sad it is that my cousin, who has worked for years to earn enough money to buy her house, cannot get financial aid when she owns and lives in her house and pays her monthly mortgage?

Another of my friends also bought a house just this March. He saved money and paid for the down payment on the house he bought from one of his officemates, and yet he does not qualify for the tax credit. Why? Because he is single and earns US$76,000.

My friend understands that this program is meant to target those who earn less money, but he is also a hardworking man who earns an honest living. He is an American who loves his country very much. Doesn’t he deserve the home owner tax credit too?

Homeowner Energy Tax Credit: Save More Money this Economic Crisis

An energy tax credit is being offered to homeowners once more this 2009, for home improvements done that help reduce energy consumption. Have you been an advocate of environmental protection even when buying products for your household?

Then good for you because this tax credit does not only apply to the energy-saving purchases you have made this year, but to those you made in the years 2007 and 2006. For a household purchase to be qualified for credit, it must be brand new and should be bought with the intention of keeping it installed for at least 5 years.

If you meet all the requirements you get a 10% to 30% tax incentive for each purchase made. The maximum amount of credit you can save is $500. This amount is for all the purchases made in 2006, 2007, and 2009.

Numerous products qualify for this incentive, including fan systems, skylights, and heating and air conditioning systems (central), windows and doors, and biomass fuel stoves (at least a 75% efficiency is rating required).

You can get the most incentives from products that actually produce energy. For example, you get 30% of your investment back when installing solar panels in your home, with a maximum amount of $2000 going back to you. Wind energy systems (small), fuel cells, solar water equipment, and other similar products will also give you a 30% tax credit.

The power is now in your hands to save the environment and get your homeowner energy tax credit all at the same time.

Home Renovation Tax Credit: What is it?

With the economy going sour, it seems as if the household renovations you have always wanted to do would be put on hold for the moment. However, the Home Renovation Tax Credit or HRTC was introduced into the Canadian federal budget on January 27, 2009. Thus, there may be no need to worry after all.

The HRTC pertains to a non-refundable tax for goods bought for or work done on a qualified place of living. A dwelling is considered qualified if it is the home you or one of or more of your family members use and own personally, from January 27, 2009 to January 1, 2010. Eligibility is family based and is limited to your spouse, and your children under the age of 18 by the end of 2009. Tax credit only happens when a expense of over 1,000 dollars, but not over 10,000 dollars is made.

Home Renovation Tax Credit: Tax Incentives

There is a variety of eligible expenditures that are covered by the tax credit. This includes but is not limited to painting the inside or outside of your house, installing new carpet and flooring, adding fixtures (such as lights and fans), installing a new water heater or a heating/air-conditioning system, and renovating a bathroom, kitchen, or basement.

On the other hand, there are also a number of expenditures that are not eligible to be credited. Most of these pertain to expenses for house maintenance such as general cleaning, carpet cleaning, furnace cleaning, pool cleaning, snow removal, lawn care, and others. Likewise, the purchasing of tools (such as hammers, nails, screwdrivers, etc.), furniture (sofas, lounge chairs, dining tables, etc.), and audio-visual electronics (stereo systems, television sets, video game consoles, etc.) are also not eligible for credit.

As you can see home improvements do qualify for credit. However, you do not have to do everything yourself because the hiring of a contractor also qualifies, as does equipment rentals and other professional services related to home improvement. So feel free to put your hard-earned money to good use by turning your house into a home for you and your family with home renovation tax credit.