Time Is Almost Up for HRTC

by Tax Guy - Burlington Accountant on January 29, 2010 Print This Post Print This Post

Sunday January 31, 2010 marks the end of the Home Renovation Tax Credit. The Government of Canada has decided not extended the HTRC. Therefore, you only have a short time to take full advantage of the HRTC and then it’s gone.

Buy Your Materials Now!

Your purchases of eligible expenses before the January 31st deadline will still qualify for the HRTC even if they are installed after January 2010. If your eligible expenses involve work performed by a contractor or a third party, and the work is not completed by January 31st, only the portion that is completed before February 1, 2010 will qualify even if a payment has been made.

How Much Is the Credit?

The HRTC is 15% of eligible expenses over $1,000 to a maximum of $10,000. Therefore, the maximum credit that may be claimed is $1,350.

What Are Eligible Expenses?

Generally, if you have renovation or alterations to your principal residence, then the expenses will qualify. In addition, the expenses must be enduring in nature and integral to the home.

Here are some examples from the CRA of things that may qualify for the HRTC:

  • Renovating a kitchen, bathroom, or basement
  • Windows and doors
  • New flooring – carpet, linoleum, hardwood, floating laminate, etc.
  • New furnace, woodstove, boiler, fireplace, water softener, water heater, or oil tank
  • Permanent home ventilation systems 
  • Central air conditioner
  • Permanent reverse osmosis systems
  • Septic systems
  • Wells
  • Electrical wiring in the home (e.g., changing from 100 amp to 200 amp service)
  • Home security system (monthly fees do not qualify)
  • Solar panels and solar panel trackers
  • Painting the interior or exterior of a house
  • Building an addition, garage, deck, garden/storage shed, or fence
  • Re-shingling a roof
  • A new driveway or resurfacing a driveway
  • Exterior shutters and awnings
  • Permanent swimming pools (in ground and above ground)
  • Permanent hot tub and installation costs
  • Pool liners
  • Solar heaters and heat pumps for pools (does not include solar blankets)
  • Landscaping: new sod, perennial shrubs and flowers, trees, large rocks, permanent garden lighting, permanent water fountain, permanent ponds, large permanent garden ornaments
  • Retaining wall
  • Associated costs such as installation, building plans, permits, professional services, equipment rentals, and incidental expenses
  • Fixtures – blinds, shades, shutters, lights, ceiling fans, etc.

Examples of expenses that do not qualify:

  • Furniture, household appliances, and electronic home-entertainment devices
  • Purchasing of tools
  • Carpet cleaning
  • House cleaning
  • Maintenance contracts (e.g., furnace cleaning, snow removal, lawn care, and pool cleaning)
  • Financing costs
  • Amount paid as part of the purchase of your new house, including “upgrades”
  • Expenses to acquire goods that have been previously used or leased by you or an eligible family member (e.g., hot water tank)
  • Expenses incurred to the rental and/or business part of an eligible dwelling

Expect Long Lines At Your Building Store

You should expect home improvement stores such as Rona and Home Depot to be busy this weekend so patience will be needed. Also Home Depot has announced that many stores will be open late this weekend.

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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