Three excellent reasons to renovate today!
(Federal Government) Renovation Tax Credit
This is a non-refundable tax credit that applies to goods acquired and work performed in order to improve an eligible dwelling. (An eligible dwelling is the principle place of residence, or that of immediate family members'.)
The basics:
- All work must be completed between January 27 2009 and February 1st 2010.
- It is for renovations, enduring alterations or changes to the land itself.
- It applies to expenditures of more than $1000, but not more than $10000.
- Therefore the maximum that can be claimed is $1350 (15% of $9000).
- If you conduct renovations on more than one eligible dwelling, you can claim for each building you renovate, as long as you use all of the buildings for personal use.
- Routine repairs and maintenance are not covered.
Examples of work eligible for the tax credit:
- Renovating a kitchen, bathroom or basement.
- New flooring.
- Building an addition e.g. a new deck.
- Painting- interior or exterior.
- A new furnace or water heater.
If you share costs as part of a cooperative housing scheme, your individual share of the costs for common areas will apply.
Examples of ineligible items:
- Purchasing new appliances.
- Buying tools.
- Carpet cleaner.
- New furniture.
How do you qualify?
Simply fill out the new line on your 2009 Personal Income Tax Return. You do not need to provide any evidence with your Return, but you must ensure that you have sufficient acceptable documentation available, should it be requested by the CRA. This information must detail your expenses, and can include invoices or receipts, amongst other forms. It must identify the type of goods, quantity, details about the transaction (date, amount), and vendor details. For more information see the CRA website.
The best thing about these programs is just because you are eligible for one, doesn't mean you are not eligible for the others. Qualify for all three and claim up to the maximum amount. There has never been a better time to renovate in Vancouver. Contact us about your project!
