Right now the Canadian government is giving you a major break on your home improvement renovations with their home improvement tax credit. If you have been thinking of doing some improvements on your home then there is no better time then now.
The Home Renovation Tax Credit applies to home renovation expenditures made between January 27, 2009 and February 1, 2010, based on agreements entered into after January 27, 2009.
A tax credit of 15 percent can be claimed on the part of home renovation expenditures over $1000 and under $10,000. That means there is a $1000 deductible, and the maximum tax credit is $1350.
Eligibility for the home renovation tax credit is based on the family. For the purpose of this tax credit, a family is generally considered to consist of an individual, and an individual’s spouse or common-law partner.
Related expenses such as building permits, professional services and equipment rentals are also eligible for the tax credit.
Examples of projects that are eligible:
- Renovating a kitchen, bathroom or basement
- Drywall installtion
- Laying new carpeting
- Putting in new hardwood floors
- Building a deck
- Painting the inside or outside of a house
- Resurfacing a driveway
- Installing a new furnace or water heater
- Laying new sod
Routine repairs and maintenance will not qualify for the tax credit.
Examples of purchases that do not qualify for the tax credit:
- construction equipment
- carpet cleaning
- maintenance contracts (furnace cleaning or lawn care, for example)
Get a free no obligation estimate for your drywall project today!