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2009 Home Renovation Tax Credit

April 30th, 2009 Leave a comment Go to comments

The Home Renovation Tax Credit (HRTC) can help improve the value of your home.

Renovating your home is an investment in the long term value of your home. Here’s how the 2009 Home Renovation Tax Credit can work for you. Canadian homeowners can claim a 15% non-refundable tax credit for eligible expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350 ($9000 x 15%). Taxpayers can claim the HRTC when filing their 2009 tax return.

What is the eligibiliy period for the HRTC?

The HRTC will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010.

Who can claim the HRTC?

Eligibility for the HRTC will be family-based which means the credit can only be claimed once per family. A family is generally considered to consist of an individual, and where applicable, the individual’s spouse or common-law partner. Family members with joint ownership will be able to share the credit. The credit can be claimed on eligible expenditures incurred on one or more of an individual’s dwellings. Renovations to houses, cottages and condominium units that are owned for personal use are eligible for the HRTC.

What should you do?

Keep your original receipts for eligible home improvement purchases and labour (eg. contractors) and submit them for a tax credit when you complete your 2009 tax return.

What types of products, services and expenses are eligible?


_ Renovating a kitchen, bathroom or basement

_ New carpet or hardwood floors

_ Building an addition, deck, fence or retaining wall

_ A new furnace or water heater

_ Painting the interior or exterior of a house

_ Laying new sod

_ Labour costs

_ Professional fees

_ Building materials

_ Fixtures

_ Equipment rentals

_ Permits


_ Furniture and appliances (refrigerator, stove, couch)

_ Purchase of tools

_ Carpet cleaning

_ Maintenance contracts (furnace cleaning, snow removal, lawn care, pool cleaning, etc.)


Source: Canadan Revenue Agency and the Department of Finance Canada www.cra.gc.ca for more information.






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