Roxanne Haddrell Personal Tax Service

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Home Renovation Tax Credit
For the 2009 tax year, the CRA is allowing taxpayers to deduct the cost of home renovations. It is important to note that this credit will be available on your 2009 income tax return only! It is a one-time opportunity.
Eligible expenses include: new flooring; building an addition or garage; new furnace, fireplace or water heater; new driveway; interior or exterior painting; laying new sod; construction of a permanent swimming pool. These include the cost of materials, fixtures, labour, permits and tool rentals. You can do the work yourself, or hire someone to do it for you.
Non-qualifying expenses include: routine maintenance; furniture, appliances and electronic equipment; financing costs; purchase of tools; cleaning.
Receipts must be dated between January 21, 2009 and February 1, 2010. If you entered into a contract before January 21, 2009, the expense does not qualify even if you pay for it within the specified date range.
If you are hiring a family member to do the renovations, they must be a GST registrant for the expense to qualify. Otherwise, you can only deduct the cost of materials.
Eligible expenses must be greater than $1000 and not more than $10,000. The maximum credit is $1350 per family. This credit may be claimed by one person, or shared between family members, but must not exceed the maximum credit of $1350.
If you own more than one eligible home, you may claim renovation expenses for each of them, up to the maximum $1350 credit. Additionally, if you co-own an eligible dwelling with another family, each family may claim up to the maximum $1350 credit for the same dwelling.
If you claim a portion of your home as a self-employment or rental expense, any amount deducted as an expense may not also be deducted under the Home Renovation Tax Credit.
Expenses that qualify for the Medical Expense Tax Credit are permitted to be claimed on both the METC and the HRTC. Also, the HRTC will not be reduced by any government grants received for the same expenditures.
Because you only save 15% of your renovation expense on your income tax return, it is not cost-effective to spend the money in order to qualify for the tax credit. However, if you planned to do some renovations in the next couple of years anyway, do them in 2009. After all, a small tax credit is better than no tax credit!
More information is available on the CRA website.
For a handy check-list of deductible and non-deductible expenses for the Home Renovation Tax Credit, take a look at "The Home Renovation Tax Credit", The Local, (The Sunshine Coast, BC), Volume 8, Issue 08, Page 9, February 25, 2010..

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Information About Us Where To Find Us Contact Us Tax Information Privacy Policy Email Us Home	Home Renovation Tax Credit For the 2009 tax year, the CRA is allowing taxpayers to deduct the cost of home renovations. It is important to note that this credit will be available on your 2009 income tax return only! It is a one-time opportunity. Eligible expenses include: new flooring; building an addition or garage; new furnace, fireplace or water heater; new driveway; interior or exterior painting; laying new sod; construction of a permanent swimming pool. These include the cost of materials, fixtures, labour, permits and tool rentals. You can do the work yourself, or hire someone to do it for you. Non-qualifying expenses include: routine maintenance; furniture, appliances and electronic equipment; financing costs; purchase of tools; cleaning. Receipts must be dated between January 21, 2009 and February 1, 2010. If you entered into a contract before January 21, 2009, the expense does not qualify even if you pay for it within the specified date range. If you are hiring a family member to do the renovations, they must be a GST registrant for the expense to qualify. Otherwise, you can only deduct the cost of materials. Eligible expenses must be greater than $1000 and not more than $10,000. The maximum credit is $1350 per family. This credit may be claimed by one person, or shared between family members, but must not exceed the maximum credit of $1350. If you own more than one eligible home, you may claim renovation expenses for each of them, up to the maximum $1350 credit. Additionally, if you co-own an eligible dwelling with another family, each family may claim up to the maximum $1350 credit for the same dwelling. If you claim a portion of your home as a self-employment or rental expense, any amount deducted as an expense may not also be deducted under the Home Renovation Tax Credit. Expenses that qualify for the Medical Expense Tax Credit are permitted to be claimed on both the METC and the HRTC. Also, the HRTC will not be reduced by any government grants received for the same expenditures. Because you only save 15% of your renovation expense on your income tax return, it is not cost-effective to spend the money in order to qualify for the tax credit. However, if you planned to do some renovations in the next couple of years anyway, do them in 2009. After all, a small tax credit is better than no tax credit! More information is available on the CRA website. For a handy check-list of deductible and non-deductible expenses for the Home Renovation Tax Credit, take a look at "The Home Renovation Tax Credit", The Local, (The Sunshine Coast, BC), Volume 8, Issue 08, Page 9, February 25, 2010..	Mission Statement To provide superior income tax preparation services tailored to each client’s unique situation.