You’ve likely heard of the Home Renovation Tax Credit (HRTC). Here are the details you need to know if you’re going to take advantage of this great incentive…
For renovations done between January 28, 2009 and February 1, 2010, you can claim a 15% credit against renovation expenses after the first $1,000. The maximum tax credit is $1350 which represents $9000 worth of renovations.
Renovations must be to any dwelling that you own and use personally, or is used by a spouse or child. Eligible dwellings include a cottage, provided it is for personal use.
Rental properties are not eligible, but you may qualify for the credit if, for example, you renovated the personal use areas on a house that is your principal residence but which contains a rental unit.
For expenditures made for common areas or that benefit the housing unit as a whole (such as re-shingling a roof), you must divide the expense between personal use and income-earning use.
Here are the renovation expenses that qualify:
– renovating a kitchen, bathroom or basement,
– building an addition, deck, shed, or fence,
– new carpet or hardwood floors,
– installing a new furnace, fireplace or water heater,
– re-shingling a roof, a new driveway or resurfacing,
– painting (interior or exterior)
– permanent swimming pools, sodding or some landscaping.
The renovation must be of an enduring nature and integral to the dwelling, and can include the cost of labour and professional services, building materials, fixtures, rentals, and permits.
Furniture, appliances, electronics, or tools, are not eligible for the tax credit. Routine repairs, maintenance and cleaning normally performed on an annual or more frequent basis are also not eligible.
The tax credit is family-based; one tax credit is available per household. If two families share the same home (as co-owners, not renters), then both are eligible for separate tax credits. The tax credit can be applied to the tax return of either spouse.
Most home have received a green envelope on their door to keep all required documentation which includes agreements, invoices, receipts, and cancelled cheques.
You should also check out the ecoENERGY retrofit program if you plan to do any renovations that will save energy.
For more details on the government websites, click below…