The Huron Expositor, 1983-11-02, Page 16ON !XPWIITOI%i
1f V!!Mt Rt -1
D'y; dward 3i�1!' k, CAS'
• Of tlhe 'nrious Turns of
assistance bait( being of',.
fered by governrdents t9.,.
homeowner$.. ttkinciifttverf ; By cofltrast, grants ,re -
to 'ronovate,,'ooneerve • eQ•Mimi, under the Canada
ergy Inr convert from oil" to Rothe Insulation Plan
altettr►ktive :heating,•fuels, .`' find the Canada Oil
one atandiriint.. ,. Substitution Plan :'(COSP)
mus} ;be declared as income
Dollar Sense offers general . on yof t tax return, and
Financial advice .by , mein' •, their real value as assistance
The, -I
bens of nstitute of is thus reduced by 30-40
Chartered Accountants of , per cent, depending on
Ontario.
Stan Sense
yourinarginal tax rate. •
This is the assistance • CHRP payments are prp-
offfered under the Canada vided in the form of for -
Home Renovation Plan givable loans from the Can-
(CHRP), and it is unique ada Mortgage and Housing
because if all the conditions Corporation (CMHC). The
are complied with, the loan is secured by apro-
funds are not considered in- .missory note and, if all loan
come for income tax. pur- conditions are complied
poses. These funds, in fact, with, the entire loan is for -
join lottery winnings and given in one year and does
capital gains earned from not have to be repaid.
the sale of a principal resi-
dence as the only farms of
income you can receive that
are not subject to income
tax.
The purpose of the loan
is to help offset the labor
costs of renovating your
home. The maximum
amount of the loan is 33,000'
a
OCKKOe
to cover up to 30 per cent of
the cost of repairing, alter •
-
ing or improving your home.
You may receive only one
CHRP forgivable loan. '
There are, of course,
several conditions. First,
the home must be the prin-
cipal residence of the appli-
cant and contain no more
than two living units. The
applicant must be the
owner -occupant, or intend
to be when the work is
done. The renovations mdst
cost at least 32,500, with at
least one-third going for
labor. The loan must be for
at least 3200. There are
specific types of home im-
provement (swimming
pools, etc.)- which are in-
eligible.
The loans are also sub-
ject to family income level
provisions, with the maxi -
t
Il
•-•
muni efigilile gltos$ 'houge-
hold income-..(prXittcipal
wage-earner plus spouse or
.,co -habitant) set at $48aQQ0
per annum. The work must
also be completed, within
six months of CMHC ap-
proval, although there are'
special provisions if the
work is partially completed.
Finally, you may forfeit the
loan if you make false state- .
inents on the application, or
if you cease to be the owner -
resident of the property.
It is the tax advantage,
however, that makes .the
CHRP loan most attractive.
So. if your home and your
family income make you
eligible for such a loan, and
you are planning renova-
tions, improvements or
additions
then run,, don't walk, to the
nearest CMHC office for
further details, and the
application form. •
r
colt 4 evQlllon..•,..•�
home Sow S , nclW
added attractions
•
c
By Brian A. Waldman, CA
Registered Home Owner-
ship Savings Plans have al-'
ways had their attractions.
as a method of saving tax,
while you saved for a
house. .
They got better
thanks to federal Finance
Minister Marc Lalonde's
April 19 budget.
Under the old rules, you
could deduct from your tax•
able income a maximum
contribution of 31,000 a
year to a lifetime maximum'
of 810,000. To qualify, you
Dollar Sense offers general
financial advice by mem-
bers of- The institute of
Chartered Accountants of
Ontario. Brian Waldman is
in practice in Toronto.
had to be over 18, and nei-
ther -you nor your spouse
can have owned a house in
the year 1981.
If you withdrew that
money to buy a house for
your own occupation, the
funds were free of -tax. If
you used the funds on
something else, they be-
came taxable in the year re-
ceived.
That chiQ.ed April 19.
Here's a look at the new
RHOSP that Ottawa's bet-
ting will catch your interest
and- stimulate Canada's
slumbering 'housing, furn-
ishings and appliance in-
dustries:
If you qualify for a
RHOSP or already have one
and tise the funds from it to
buy a newly developed
home between budget
night and December 31,
1984 you can get an addi-
tional deduction from your
taxable income equal to the
510,000 minus the amount
you have contributed to the
RHOSP in past years.
Let's assume you have
contributed 81,000 a year to
a RHOSP over the past four
years. Yoit now have a total
of $4,000 intcontribittions 11.1
• the plan. r Assume that
$4,000 has 'earned an addi-
tional 81,000 in interest for
a grand fp(al of $5,000 in _-
the RHOS?.
Only the amount ybu con-
tributed ik' counted when
detefmining the tax deduc-
tion you can claim in "top-.
ping up" to the 810,000
maximum. , In this case,
since you put in 14,000,
you'll be 'able To claim a
36,000 deduction from your
income if ypu buy a nevi'
home. And it also appears
that you won't have to act•
ually contribute the addi-
tional amount to the plan to
get the deduction.
Under the new rules, the
topping up,of the RHOSP to
the lifetime maximum is
available td only one person-
per house. So both you and
your spouse can't get the
topping up benefit •
But maybe you've decid-
ed you don't really went to
buy a house using, saS•,
14,000 you have in the
RHOSP.
That's fine too, .
because for the first time in
years under the plan you
can withdraw all or part of ,
the funds to buy specified
home furnishings and
appliances even if you don't
buy a new house. The only
stipulations are that you
buy the furniture before
December 31 of this year
and that you cannot make a
RHOSP contribution for
1983 after April 19, 1983.
Remember any amount
you take mit of the plan in
excess of the cost of quali•
fied furniture is taxed.
And, oh yes, keep the re-
ceipt. Revenue Canada
wants them filed with your
tax return next year.
i
oval Cify
ittltf1$.40l9
271.2654
LOCALLY OWNED & OPERATED
Festival City Rustproofing Ltd.
MORE THAN JUST RUSTPROOFIN6!
Ikf BA
Ziebart
RT tAuto I Ru
Zi`baart Shin` Guard =: Guaranteed For 2 Years
✓ Ziebart Zee -Glaze — Guaranteed 5 Years
* Ziebart Splash Guards
* Ziebart Seat & Rug Protection
* Ziebart Rust Protection — Guaranteed 5=8 Years
* Ziebart Stone Guard
* Stinger Step Boards
* Stinger Grill Guards
- Tail Gate Protectors
WE
OFFER:
FOR USED CARS AND TRUCKS WE HAVE DESIGNED A UNIQUE
ODORLESS OIL SPRAYING METHOD, DESIGNED FOR RUST PROTECTION
ON USED VEHICLES ONLY.
"The Largest & Longest Established
Rustproofing Company in Perth County"
Open Monday to Friday
8 a.m. to 5:30
or after hours
271-9042
;OHN RIORDON
OWNER
RR 4,
STRATFORD
(Meltones Road)
271-2651
JUDY RIORDON
OWNER
VER
BY JOHN and JUDY RIORDON
Festival City Transmission
OLD or NEW, 116 or SMALL
WE
FIX THEM
ALL !
✓ SAME DAY SERVICE ON MOST MAKES
• OVERNIGHT SERVICE ON HARD TO GET PARTS
* 6 MONTHS GUARANTEE ON ALL PARTS & LABOR
* LARGEST STOCK OF NEW. TRANSMISSION PARTS IN THE AREA
* FREE PICKUP & DELIVERY
* FREE ROAD TEST & DIAGNOSIS
* QUALITY PARTS & WORKMANSHIP AT AFFORDABLE PRICES
* 2 TECHNICIANS TO SERVE YOU BETTER & MORE EFFICIENTLY
Bill is the newest member of our team. Ile comes to us wry highly
recommended: 8111 has 8 years experience in the transmission
repairing business and has rust completed an up to date course ,
on the automatic aerdrWe transmissions foued in the most current
model can and light trucks also front wheel *in.
1
Judy Riordan
Secretary
t1`
Brad Deft
APprotIe
IOI Lova
Transmission Technician
Come in }r let Bill or Brad or myself solve your
trans ion problems ...
Open Monday to Friday, 8 am. - 5:30 p.m. or after hours call 271.9O(2.
RR 4 STRATFORD
(McKONES ROAD)
271-2651
COLD WDATRER COMING!
• Door and Window Weather Stripping
• Caulking
• Kerosene Heaters
• Electric & Base,board Heaters
Wer -can update your hydro services for -
more efficient use and safety -
Estimates and quotes on your needs
— GLADLY GIVEN —
Main St. Seaforth
S' LS
HO/ E HARDWARE
527-1620
Get Ready For Winter
nt+., , rill
YOrl,1R CENTRE FOR COMPLETE
SALES & SERVICE
RETAIL & WHOLE ALE LEVELS
WE'RE HERE TO DEAL
• Tires
• Automotive
Supplies
• O i l
Undercoating
• Farm Supplies
DROP IN AND
CHECK OUR
PRICES
P. E. M. TIRE
AND AUTOMOTIVE SUPPLY
Hwy. '08 East, ,Dublin 345-2400
GET READY FORWINTER!
at Archie's Sunoco
FREE ANTI -FREEZE CHECKS
We Repair All Makos Of Tres
•
• Snow Tires Installed
• Oil Grease & filter
• Windshield Washer
Anti -Freeze
• Rad"Anti,Freeze
Installed
• Gar Line Anti -Freeze
• Triidon Winter Wiper
Blades
OPEN: 7 DAYS A WEEK
Archie's • Sunoco
Gtxierich St. E.
Seaforth 527-0881.•