Eligible Tax Deductions For Home Improvements

by Tax Guy on February 1, 2011 Print This Post Print This Post

NOTE: The HRTC was only available for the 2009 tax year and is no longer available.

We have had many questions posted below as well as received by e-mail about the new Home Renovation Tax Credit.  We encourage you to continue to ask your questions!

Question: I wanted to know which of the costs we incurred improving our home would be eligible for tax deductions. We did most of the work ourselves but we purchased paint, wood trim, flooring, faucets, sinks, tile etc. We also purchased tools to perform the work. Is any of this deductible? Is there a limit to the amount we can deduct?

Thank you for your response.

In the federal budget presented January 27, 2009, the government announced a home renovation tax credit.

The credit will apply to expenditures in excess of $1,000, but not more than $10,000 than $10,000, resulting in a maximum credit of $1,350 ($9,000 x 15%) per family.  A family is generally an individual, a spouse or common law partner and their children who were, throughout 2009, under the age of 18 years.

Expenditures for work performed of goods acquired after January 27, 2009 and before February 1, 2010, will be eligible for the credit.

February 2011. The Home Renovation Tax Credit was only available or the 2009 tax year and is no longer available. Therefore, I have close the comments to this article.



Related Articles

Print This Post Print This Post

{ 116 comments }

Tax Guy May 19, 2010 at 1:28 pm

Flyguy,
I just saw a letter come from the CRA on this topic. They do not consider a central vacuum eligible for the HRTC. Based on the definition of eligible expenditures, I disagree with their assessment. However, is it worth the fight?

Michael January 29, 2011 at 2:47 pm

Can I claim $ 18,000 new windows /a patio door in T4 tax ?

Brent January 30, 2011 at 12:07 pm

Michael this comment does not make sense. What do you mean T4 tax? The HRTC has nothing to do with T4s. If the windows are for 2009, you can send in the claim if you paid it in the eligible 2009 period. There is no HRTC claim for 2010.

Tax Guy January 31, 2011 at 11:01 am

Brent,
Ignoring the T4 portion, I assumed he was asking if the HRTC was available for 2010.

Tax Guy January 31, 2011 at 11:01 am

Michael,
The home renovation tax credit was only available for the 2009 tax year. If you incurred the cost for the eligible period, then yes it would qualify.

Dave February 6, 2011 at 11:50 am

The Home Reno Tax credit for 2009 says it is to maximum of 10,000.
If my kitchen reno was 12,000 i’m assuming they will allow me up to the 10,000.
I filed my 2009 but bid not request the credit. Is it to late to request it now? Can i do it online at CCRA – change my return or do i have to send a letter requesting them to amend my return and apply this credit?
Dave

Tax Guy February 7, 2011 at 7:55 am
Eleanor Kubish February 10, 2011 at 9:22 pm

I spent $3000 on new windows for my home in Nov/09. Can I apply for the tax credit this year (2011)?

Tax Guy February 11, 2011 at 4:34 pm

Unfortunately, no. The tax credit is only available for the 2009 tax return. If you did not claim it for 2009, then you can file an amendment.

{ 3 trackbacks }

Previous post:

Next post: