25 Aug 2010, Posted by admin in MALIK'S CORNER, 0 Comments

Home Renovation Tax Credit – Eligible Expenses


A client asked me this weekend…would installing a hot tub qualify me for a Home Renovation Credit?

After a bit of chuckle I researched the Canada Revenue Agency site and found out that the cost is actually allowable. I was intrigued and researched further the items which were eligible and not. The list is exhaustive and so worth printing out and keeping with your tax file. Here is the CRA link to the Home Reno page and the eligible expenses.


Home Reno Page at CRA


CRA Eligible Expenses

SOME IMPORTANT ITEMS THAT GOT MY ATTENTION

You can get a double tax credit for the same expense….this is wonderful….say you updated your windows and get the eco-energy retrofit grant. You also get the Home Reno Credit for the same expense. Make sure your accountant is aware of this.

Eligible renovations done on your cottage are also claimed under the Home Renovations Program. A family is allowed $10,000 for 2009 and this includes your cottage and home.

CONDOMINIUM and COOPERATIVE housing corporations, the individual’s share of the cost of eligible expenditures for common areas will qualify. It may be worthwhile giving notice to your Condo association that you would like a breakdown of what portion of your monthly fees are allocated to ‘common areas’.

There are many other eligible expenses so check this out carefully because even blinds and window coverings are eligible. Nothing wrong with making sure you claim all the credits.

Kind regards,

Prem

(Please share with family friends and colleagues…as this may slip through the cracks)

Continue Reading...