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Home Renovation Tax Credit

February 11, 2010 - 2 comments

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:

  • information that clearly identifies the vendor/contractor, their business address and, if applicable, the GST/HST registration number;
  • a description of the goods and the date when the goods were purchased;
  • the date when the goods were delivered (keep your delivery slip as proof) and/or when the work or services were performed;
  • a description of the work performed including the address where the work was performed;
  • the amount of the invoice;
  • proof of payment (receipts and invoices) - invoices must indicate "paid" or be accompanied by other proof of payment, such as a credit card slip or cancelled cheque; and
  • a statement from the co-operative housing corporation or condominium corporation (or, for civil law, a syndicate of co-owners) signed by an authorized individual. This statement should identify:
    • the amounts incurred for the renovation or the alteration work;
    • your portion of these expenses if the work is performed on common areas of the condominium;
    • information that clearly identifies the vendor/contractor, their business address and, if applicable, their GST/HST registration number; and
    • a description of the work performed and the dates when the work or services were performed.”

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.

Kathleen
 

By: Kathleen Clough with 2 comments.
Comments
  12/03/2010 5:49:58 PM
catherine munro
Thanks Kathy. I had forgotten about the condo expenses. They have now given all the owners in our building a receipt.
 
  11/03/2010 5:54:29 PM
Jane Baker
Good comment on the condo expenses, Kathy. We just found out about it this week.
 



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