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.
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@ Steve:
Generally speaking the cost of the flooring would qualify provided you acquired the materials from a supplier registered for the GST.
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