Federal home renovation tax credit ( HRTC)

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Only available for the 2009 tax year. The Home Renovation Tax Credit is a non-refundable tax credit based on eligible expenses for improvements to your house, condo or cottage. It can be claimed on your 2009 income tax return. It applies to eligible purchases made after January 27, 2009, and before February 1, 2010.

The HRTC applies to eligible expenses of more than $1,000, but not more than $10,000, resulting in a maximum non-refundable tax credit of $1,350 [($10,000 − $1,000) × 15%]. Who is eligible for the HRTC? Eligibility for the HRTC is family based. The claim can be split among family members but the total amount claimed cannot exceed the maximum allowable. If two or more families share the ownership of an eligible dwelling, each family can claim its own credit (i.e., each up to $1,350) that is calculated on its respective eligible expenses. All expenses must be supported by receipts and acceptable documentation.

Keep them in case we ask to see them. Eligible and ineligible expenses Considering the extensive num his income tax report. Consult the Internet Site at http://www.cra- arc.gc.ca/tx/ndvdls/sgmnts/hmwnr/hrtc/lgblty-prd-eng.html for the complete lists.


The expenses are eligible when they are incurred in relation to renovations or alterations to an eligible dwelling (or the land that forms part of the eligible dwelling) and are permanent in nature. As a general rule, if the item you purchase will not become a permanent part of your home or property, it is not eligible.



Note Some businesses or individuals may assert that certain items qualify for the HRTC. It is important to remember that you are responsible for ensuring that all eligibility requirements are met when you claim this credit on your tax return.

Examples of eligible expenses o Renovating a kitchen, bathroom, or basement, windows and doors o New carpet or hardwood floors o New furnace, boiler, woodstove, fireplace, water softener, water heater, or oil tank o Permanent Home ventilation systems, central air conditioner o Septic systems and wells o Electrical wiring in the home, home Security System (monthly fees do not qualify) o Solar panels and solar panel trackers o Painting the interior or exterior of a house o Building an addition, garage, deck, garden/storage shed, or fence o Re-shingling a roof o A new driveway or resurfacing a driveway o Exterior shutters and awnings o Permanent swimming pools, hot tub and installation costs (in ground and above ground) o Landscaping o Associated costs such as installation, permits, professional services, equipment rentals, and incidental expenses o Fixtures - blinds, shades, shutters, lights, ceiling fans, etc.


Note Window coverings, such as blinds, shutters and shades, that are directly attached to the window frame and whose removal would alter the nature of the dwelling are generally considered to be fixtures and therefore would qualify for the HRTC. In some circumstances, draperies and curtains may qualify for the HRTC, if they would not keep their value or usefulness if installed in another dwelling. If these qualifying criteria are not met, it is likely that draperies and curtains would not qualify for the HRTC.


Examples of ineligible expenses o Furniture, appliances, and audio and visual electronics o Purchasing of tools o Carpet cleaning o House cleaning o Maintenance contracts (e.g., furnace cleaning, snow removal, lawn care, and pool cleaning) o Financing costs Work performed by electricians, plumbers, carpenters, architects Generally, work performed by electricians, plumbers, carpenters, architects, etc. in respect of an eligible expense qualifies. Family member hired for renovations Expenses are not eligible if the goods or services are provided by a person related to you, unless that person is registered for the Goods and Services Tax/Harmonized Sales Tax under the Excise Tax Act.

If your family member is registered for GST/HST and if all other conditions are met, the expenses are eligible for the HRTC. Eligible dwellings An eligible dwelling is a housing unit that is eligible to be your principal residence or that of one or more of your family members at any time between January 27, 2009, and February 1, 2010. In general, a housing unit is considered to be your principal residence when it is owned by you and ordinarily inhabited by you, your spouse or common-law partner, and your children.

This means that any dwelling that you own and use personally could qualify, including your home or your cottage. Cottages If you own and use your home and cottage personally, eligible expenses incurred for both properties will normally qualify for the HRTC. Note that the maximum amount of eligible expenses you can claim for the HRTC is $10,000 per family. Rental and/or business use of an eligible dwelling If you earn business or rental income from part of an eligible dwelling, you can claim the HRTC only for expenses incurred for the personal-use areas of the dwelling.

More information in my next article

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Kathy Knight
Intracoastal Realty Corp - Wilmington, NC
BROKER, ABR, CRS, GRI, SFR, Wilmington NC Homes an

Many people are not aware of these tax credits - valuable information...

Oct 15, 2009 07:34 AM #1
Gene Allen
Fathom Realty - Cary, NC
Realty Consultant for Cary Real Estate

Thanks for the info.  I was not aware of it myself.

Oct 15, 2009 02:10 PM #2
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