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Address
39 Centre Street,
Thornhill, Ontario L4J 1G1
Tel: 905 771-1131
Fax: 905 763-7689
Email: info@accplus.ca
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Newsletter October 2009
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Accplus Newsletter
Vol. 1 Oct
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Tax
Newsletter is used to provide a summary of
recent tax news, case developments, publications
and upcoming presentations. For questions or
comments about this newsletter, email info@accplus.ca
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What is Home
Renovation Tax Credit (HRTC)
 It is a
non-refundable tax credit introduced by the
federal government to stimulate the economic
situation. The credit is equals to 15% of
eligible renovation or alteration expenditures
you incur, in excess of $1,000, but no more than
$10,000, which is translate to a maximum of
$1,350.
Who is eligible?
Home owners who renovate their
principle residences, or personal used vacation
homes/cottages.
Eligibility period
January 27, 2009 to
January 31, 2010.
Eligible
expenses
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Renovating a kitchen, bathroom, or
basement
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Windows
and doors exterior and/or interior, Garage door
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New
carpet or hardwood floors
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New
furnace, boiler, woodstove, fireplace, water
softener, water heater, or oil tank
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Permanent
Home ventilation systems
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Central air conditioner
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Permanent
reverse osmosis systems
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Septic
systems and Wells
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Electrical wiring in the home
(e.g., changing from 100 amp to 200 amp service)
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Home
Security System (monthly fees do not qualify)
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Solar
panels and solar panel trackers
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Painting
the interior or exterior of a house
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Replacement of siding, eaves
troughs, soffits and facia
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Building
an addition, garage, deck, garden/storage shed,
or fence
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Re-shingling or replacing a roof
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A new
driveway or resurfacing a driveway
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Exterior
shutters and awnings
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Permanent
swimming pools (in ground and above ground)
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Permanent
hot tub and installation costs
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Pool
liners
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Solar
heaters and heat pumps for pools (does not
include solar blankets)
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Landscaping: new sod, perennial
shrubs and flowers, trees, large rocks,
permanent garden lighting, permanent water
fountain, permanent ponds, large permanent
garden ornaments.
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Retaining
wall
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Associated costs such as
installation, permits, professional services,
equipment rentals, and incidental expenses
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Fixtures - blinds, shades,
shutters, lights, ceiling fans, etc.
Ineligible
expenses
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Furniture, appliances, and audio
and visual electronics
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Draperies
and Curtains in most circumstances
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Purchasing of tools
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Carpet
cleaning
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House
cleaning
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Maintenance contracts (e.g.,
furnace cleaning, snow removal, lawn care, and
pool cleaning)
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Financing
costs
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Goods or
services provided by a person related to you,
unless that person is registered for the Goods
and Services Tax/Harmonized Sales Tax under the
Excise Tax Act
Documents
needed to claim
HRTC
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Invoices, and receipts, clearly
identified the type and quantity of goods
purchased;
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Agreement, invoices and receipts
from the contractor identified contarctor Name,
address and GST number, if applicable;
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Description of the work performed
including the date and address where the work
was performed;
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The
amount of the invoice; and
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Proof of
payment.
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Medical
Expenses
 In general the medical expenses
that you can claim are:
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payments to
a medical doctor, dentist, nurse, or other
medical professionals, or to a public or
licensed private hospital;
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premiums paid to private health
services plans;
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payments for artificial limbs,
wheelchairs, crutches, hearing aids,
prescription eyeglasses or contact lenses,
dentures, pacemakers, prescription drugs, and
certain prescription medical
devices.
The following
are some addition expenses which fall under the
general umbrella of medical expense
claim:
Air
Conditioner
The cost of installing a central
air conditioner can be claimed as a medical
expense, provided that the taxpayer has a
prescription from his/her doctor. The
prescription should indicate that air
conditioner is needed to cope with an ailment
which is both severe and chronic. The amount
claimed must be the lesser of $1,000 and 50% of
its costs.
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Sincerely, and thanks for
reading.
Accounting Plus Financial
Services Inc
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This
publication contains information in summary
form, and is intended for general guidance only.
It should not be regarded as comprehensive or a
substitute for professional advice. Before
taking any particular course of action, please
contact info@accplus.ca to discuss
these matters in the context of your particular
circumstances. We accept no responsibility for
any loss or damage occasioned by your reliance
on information contained in this
publication.
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Did You Know...
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The credit
is only available for 2009 tax return, even if
your renovation takes place in January
2010.
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Keep all the
related documents (invoices, receipts and
agreements etc.) to claim the
credit.
Swiss
Bank
Account?
CRA has
announced that the Canadian Government
would make effort to seek details of Canadian
account holders from Swiss Bank UBS AG.
Previously, the United States forced UBS to
provide the information of 4, 450 American
clients suspected of tax
evasion.
What
to do...
Owners of offshore accounts
can avoid prosecution and penalties, and often
obtain an interest reduction by making a
voluntary disclosure (tax amnesty application).
Contact us for more
detail.
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Tips
Purchasing new computer equipments
including software system and data processing
equipments between Jan 27, 2009 to February 2011
will get you a full 100% deduction of the cost
of these
purchases.
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