Many Ontario municipalities have programs to provide tax relief to Heritage Property Owners. Municipalities pass by laws and can formerly designate properties of cultural heritage and interest. There are 30 municipalities that have tax relief programs.  Tax relief and grants are being offered to this growing section of the real estate market. The range of savings is 10 to 40 percent .

The three Programs are : Heritage Property Tax relief measure,.Direct Cash grants for rehabilation and restorations projects, and Muncipal tax back grants.

The property must be designated from the Ontario Heritage Act:

Please note programs vary from one muncipality to another:  You should  for more information contact your local municipal office to see if any of these programs are in place.

Excerpts of this article  Realtor Edge : Author of full article is  Mr. Robert  B Hulley

This summer is a posting to assist clients who may own a heritage property.

Information deemed reliable but not guaranteed.

I recently attended a seminar on ” Taxation of Residential Real Estate” put on  by the Oakville Real Estate Board. The speaker was Maureen Tabuchi and was sponsered by Insuranceland and Colour Tech marketing One expense often overlooked is moving expenses. You can potentially garner a huge refund providing you move at least 40 kilometers to another location. Your moving expenses might be allowable if you are employed  and your new home is closer to work, you are moving closer to your self employed business. You are a full time student and moving to attend school or closer to a summer job.

Many expenses that may be deductable are as follows, packing, breaking a lease, furniture storage, insurance costs, transportation costs, up to 15 days of meals, mortgage prepayment penalties, legal fees, and REAL ESTATE COMMISSIONS ( OF YOUR OLD HOME)  mortgage interest, property taxes( up to  $5000 ) utility reconnections.

Please if you are planning a move over 40 km , please contact your accountant to verify the above information, and to verify the latest tax information. So you can know what you can and cannot deduct.

Home Buyers’ Plan (HBP)

Here is another incentive to assist people with home ownership.

The Home Buyers’ Plan (HBP) is a program that allows you to withdraw up to $20,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability .

Under proposed changes, for 2009 and subsequent years, withdrawals made after January 27, 2009, the maximum is increased to $25,000.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.html

Information from government of Canada web site deemed accurate but not guaranteed.

The Home renovation Tax credit means you can qualify for $ 1,350.00 on renovations if they are completed by next February.

The credit will only be available for the 2009 tax year and applies to eligible expenditures of more than $1,000, but not more than $10,000, resulting in a maximum credit of $1,350 ($9,000 x 15%).

Here is the link to assist you further http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhmrnvtn-eng.html

Information from Government of Canada web site deemed accurate but not guaranteed.

First time buyers are gettting  assistance from the government. You can now qualify up to $ 750.00 towards your closing costs.

. How is the new HBTC calculated?

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.

3. Who is eligible for the HBTC?

An individual will qualify for the HBTC if:

• they acquire a qualifying home; and
• neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.

For more information here is the link  http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html

Information from Government of Canada website Information deemed reliable but not guaranteed

Grants and Rebates for Consumers

The Government has created a Land Transfer rebate program for First Time Buyers.

http://www.rev.gov.on.ca/english/bulletins/ltt/1_2008.html

For more information see Ontario Government Ministry of Revenue Web site.  Rebates are claimed

at the Land registry Office.

Amount of Refund

The amount of the refund claimed will, if granted, offset the land transfer tax payable. The maximum amount refundable is $2,000.

Examples:

Information from Government of Canada website. Information deemed accurate but not guaranteed.