As you may recall, the January 2009 Federal Budget introduced a one-time Home Renovation Tax Credit for homeowners. The credit is available for eligible expenditures incurred between January 28, 2009 and January 31, 2010. It is calculated at the lowest marginal tax rate of 15% on qualifying expenditures of more than $1,000 but not more than $10,000. The maximum credit is therefore $1,350 (15% of $9,000).
The CRA website includes information on this topic for your reference. It is important to note the documentation requirements to support your claim. According to CRA’s website:
“Eligible expenses must be supported by acceptable documentation, such as agreements, invoices, and receipts, and must clearly identify the type and quantity of goods purchased or services provided, including, but not limited to the following information:
Note the final point if you own a condo or coop. If eligible renovations were performed on the building, you should receive a receipt from the condo or coop corporation reporting your proportionate share to support your claim.
You are encouraged to review your receipts now rather than later to ensure they will meet the requirements outlined above. Leaving this task until the end of April may jeopardize your ability to claim the credit.