The recent introduction of the Canadian Government's Home Renovation Tax Credit (HRTC) is good news for homeowners about to embark on a remodeling project but not all work qualifies and it must be completed on a house, cottage or condominium owned for personal use. The credit applies to work completed by February 1, 2010.
Renovation costs for projects such as finishing a basement or remodeling a kitchen or bath will be eligible for the credit up to the set limits. Routine repairs and maintenance and purchase of furniture or appliances does not qualify, however installing new carpet or hardwood floors does.
The credit is calculated as 15% of eligible expenditures up to $10,000 but there is a $1,000 minimum threshold meaning the maximum credit that can be received is $1,350 per individual or couple.
$10,000 expenses - $1,000 deductible = $9,000 x 15% = $1,350
Some exceptions apply where property is co-owned.
The HRTC is claimed on your 2009 tax return.
For more information and a complete list of eligible deductions, visit Revenue Canada's website http://cra.gc.ca or call 1-800-622-6232 to order an information pamphlet.
If you live in Quebec, you may also qualify for a tax credit from the provincial government. The minimum threshold is $7,500 and eligible expenditures of up to $20,000 qualify on work completed by January 1, 2010. You must use a lincenced contractor to qualify. Call 514-644-4545 for more information.
Debra Tan is an internationally recognized kitchen designer based in St. Lambert, Quebec
True North Custom Cabinets
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Phone: 450-923-9559 Fax: 450-923-9229