Tax Free Savings Account

Beginning in 2009, Canadian residents aged 18 and over are able to contribute up to $5,000 annually to a Tax Free Savings Account.  While unlike an RRSP, contributions will not be tax deductible,  income earned in the plan is not taxable and all withdrawals are tax free.

Home renovation tax credit

To stimulate economic growth and encourage Canadians to invest in improvements to their homes, the 2009 Federal Budget proposed a temporary Home Renovation Tax Credit (HRTC).

Home owners will be able to claim a 15% non-refundable tax credit (i.e. can only be applied to the extent that taxes are payable) for eligible expenditures on their 2009 tax returns.

The credit will apply to expenditures in excess of $1,000, but not more than $10,000, resulting in a maximum credit of $1,350 ($9,000 x 15%).