Eligible Tax Deductions For Home Improvements

by Tax Guy - Burlington Accountant 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.

About The Tax Guy...

Dean Paley CGA CFP is a Burlington accountant and financial planner who services individuals and business owners locally, nationally and internationally. Dean has appeared in the National Post, Toronto Star and Metro News.

To find out more, visit Dean's website Dean Paley CGA CFP or connect via Twitter @DeanPaleyCGACFP.

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