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New Federal Budget could have impact on Kelowna real estate market

Posted On: 2009-01-29

New Federal Budget could have impact on Kelowna real estate market!

The federal budget released on Tuesday January 27, 2009 contains a few items of interest to those in the residential construction industry. In summary, they are as follows:
 
Home renovation tax credit:
Homeowners can claim a non-refundable 15% tax credit on eligible home renovation costs incurred and paid after January 27, 2009, and before February 1, 2010, under agreements entered into after January 27, 2009.
 
The tax credit is available on expenses exceeding $1,000, but a maximum of $10,000 of expenses qualify per family unit, so that the maximum credit will be $1,350 (i.e., $9,000 x 15%).
 
Home Buyers' Plan:
Commencing January 28, 2009, first-time home buyers can withdraw $25,000 from a Registered Retirement Savings Plan (RRSP) to purchase or build a home, without incurring tax. Previously, the limit was $20,000.
 
First-time home buyers' tax credit:
First-time home buyers that acquire a qualifying home after January 27, 2009, can claim a 15% non-refundable tax credit on up to $5,000, for a maximum credit of $750. If a home is purchased jointly, the total credit that may be claimed by all purchasers is $750. The unused portion of the credit can be transferred to a spouse or common-law partner.

These items are good for home buyers and those wanting to sell their homes.  Contact Paige and Al for more information on the local Kelowna real estate market and how you can benefit from these budget items.

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