Posted by: SMARTER BOLDER FASTER | July 28, 2009

Time to Renovate?

Did you know that the Federal Government has a Home Renovation Tax Credit (HRTC) of up to $1350 for renovations of “Eligible Dwellings.”

What is an “eligible dwelling”? An “eligible dwelling” is a house, condo, or cottage owned for personal use.

Renovations and alterations must be relatively enduring to qualify for the tax credit. For example, resurfacing a driveway, new carpets, interior or exterior painting, renovating a kitchen, or building a deck are eligible for the credit. Included in the credit are the costs of building materials, labour, permits, professional services, rentals and fixtures.

“Ineligible renovations” are things such as new furniture and appliances, maintenance contracts such as house cleaning and snow removal, or the purchase of tools. Routine repairs and maintenance also do not qualify for the HRTC.

 

How the HRTC Works:

  • You are eligible for the 15% credit on expenditures of over $1,000 but under $10,000 to a maximum credit of $1350.
  • The expenditures have to be incurred after January 27th 2009 and February 1st 2010.
  • You must make the claim for the HRTC on your 2009 Tax Return.
  • You have to keep all of your receipts; they do not need to be submitted with your tax return, but must be available if requested by the Canada Revenue Agency (CRA).
  • Renovations are not eligible if completed by someone you are not at arm’s length with, for example a blood relative, unless they are registered to collect GST/HST.

 

For more information check out http://www.budget.gc.ca/2009/pamphlet-depliant/pamphlet-depliant3-eng.asp or http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhmrnvtn-eng.html

Click here for more info on calculating your HRTC and keeping track of renovations http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/hmwnr/hrtc/clcltng-eng.html

 

All Information taken from the Canada Department of Finance http://www.budget.gc.ca/2009/home-accueil-eng.asp and the Canada Revenue Agency http://www.cra-arc.gc.ca/menu-e.html

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