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Take a look at what we have happening around the building on the following platforms:
HomeReno Tax Credit
Wed, 04/14/2010 - 19:48 — Rome
Wondering if anyone 'in the know' could shed some light on this funny discrepancy i just found.
Yeah, i know im doing my taxes a little late.... but it just struck me.
I (and all owners) paid around $2000 each for the parkade repairs. Yet we are only eligible to claim about a quarter of that as actually 'spent' money? what gives?
I mean, the obvious answer is "the building only made actual payments of a quarter of that money in 2009"
which would lead to, why did you take/ask for all of the money at once?
odd stuff...
Credit
I'll have to admit right from the outset that I don't completely understand how the whole gov't home reno credit system worked, so I can't be sure exactly how accurate my answer will be about the tax part. But, I'll try.
From what I've been led to understand by the folks I have do my taxes, we got to claim home improvements (up to $10,000), but were only credited a percentage of the total amount (and what that % is, I don't know). So, this is the part that makes a better explanation murky.
As for the payment schedule, that part I can explain. Everyone was asked to pay their share up front because we knew that not everyone was going to (and many still haven't paid at all). This ensured that we (being the residential side) would always have enough to be able to pay our portion each month, without falling in arrears. We also wanted to make sure the project got underway, as it had been delayed numerous times already (for things like the major roof repairs of the year before; plus, we got a discount on the project because it was the slow time of year for such work, thus saving all of us a lot of money). If we hadn't collected enough money early on to get the project underway, we ran the risk of the restoration company walking away, leaving the holes in the floor or not even starting in the first place. We didn't think that was a good idea, so stragglers aside, we went to the owners to collect our full portion.
So, to get back to the tax part, you're right about not using all the money we collected in 2009. We used whatever was used (which would be available to claim for credit), based on the monthly payment schedule. How that gets broken down to be claimed (beyond the division between units by unit factor), I don't really know. Since it was a 6 month project (that will now go 7) that began in November, 25% seems about right.
I think.
thanks for the fast reply Chris
the HRTC is 15% of 10,000, after the deduction of the first thousand.
so if you have the full 10Gs, its 15% of 9000 = $1350 max
i had guessed that the building had done as much.
which leaves one final question, perhaps asking a bit too much:
why did we not have the foresight to get billed for all the work (or the bulk of it, which we knew was going to be done anyways) up front in 2009? i really would have rather claimed 2000 than 500.
Billing
Again, not entirely sure about the answer to this, but my best guess is that because of the complications of how the costs were split between the residential and the commercial sides, billing all the residents up front to ensure the tax credit wouldn't have worked.
Now that I think about it, we kind of lucked out on this. Because of the delays, we didn't start this project until after the gov't introduced the home reno tax credit program (rather than when we had planned on doing it originally). So, even if we didn't maximize it to our fullest potential (for credit), we still got to claim SOME of it, rather than none at all (which would have been the case any other year). $500 is better than $0, right?
I concur. ill gladly take
I concur. ill gladly take something over nothing.