How to take advantage of the Home Renovation Tax Credit

Part of “Canada’s Economic Action Plan” includes a Home Renovation Tax Credit that could help you save up to $1,350 on eligible home improvements when goods are purchased or professional services are performed after January 27, 2009 and before February 1, 2010.

The Home Renovation Tax Credit is a federal non-refundable tax credit based on eligible expenses for improvements to your house, condominium, or cottage. The 15% tax credit applies to eligible expenses that exceed $1,000, but not more than $10,000. For instance, if you installed new windows at a cost of $5,000 and new shingles at a cost of $5,000 your tax credit is calculated as follows. ($10,000 - $1,000) x 15% = $1,350 tax credit.

You must get your contracts in writing, keep your receipts and claim the credit on your 2009 tax return.

Eligible expenses must be of an enduring nature and integral to your property.

Examples of eligible expenses

Renovation of a bathroom, basement, or kitchen
New windows, doors, or flooring
Building an addition, garage, deck, shed or fence
A new furnace, fireplace, water softener, or water heater
A new driveway, or a new surface on an existing driveway
Re-shingling a roof, or painting a house
Landscaping projects like new sod, perennial shrubs and flowers, trees, etc.
Swimming pools (permanent – in-ground and above ground)
Fixtures – blinds, shades, shutters, awnings, lights, fans, etc.
Associated renovation costs such as permits, professional services, equipment rentals, etc.

Examples of non-eligible expenses

Improvements made to rental units even if located with your primary residence
Furniture, appliances, tools
Audio and visual electronics
Routine repairs, maintenance and cleaning costs
Financing costs

For more information on the Home Renovation Tax Credit click here.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Real estate geeks can follow our daily updates on Twitter @Norm_Fisher.

Our Saskatoon home search tool offers MLS listings represented by all real estate brands, presented with more detail than you’ll find anywhere else. Check it out here.

Norm Fisher
Royal LePage Vidorra


No comments

Post Your Comment:

Your email will not be published
The Saskatchewan REALTORS® Association (SRA) IDX Reciprocity listings are displayed in accordance with SRA's MLS® Data Access Agreement and are copyright of the Saskatchewan REALTORS® Association (SRA).
The above information is from sources deemed reliable but should not be relied upon without independent verification. The information presented here is for general interest only, no guarantees apply.
Trademarks are owned and controlled by the Canadian Real Estate Association (CREA). Used under license.
MLS® System data of the Saskatchewan REALTORS® Association (SRA) displayed on this site is refreshed every 2 hours.