You’ve Renovated Your Toronto Home To Claim The Home Renovation Tax Credit – Now What?

The Home Renovation Tax Credit (HRTC) was a program introduced by the Canadian Government to help homeowners boost the value of their homes by allowing them to claim a tax credit for completing any necessary renovations.  

Any work performed or goods acquired between January 27, 2009 and February 1, 2010 can qualify, and the purchase of supplies for renovations is eligible no matter when they are actually installed.  

Some examples of renovation details that are included in the HRTC are building permit fees, professional installation, equipment renting costs, painting, remodeling, finishing a basement or adding new flooring. Even if you performed all or most of the work yourself or had a family member help out, many of the supplies purchased will still be eligible. 

What is the maximum tax credit? 

Homeowners can claim 15 per cent of any eligible renovation expenses that are between $1,000 and $10,000, resulting in a maximum tax credit of $1,350.  

How do I claim the HTRC? 

The HTRC is claimed on a special section that will be added to tax booklets for the 2009 tax year called Schedule 12. This section must be completed and any original receipts for services or goods that qualify should be included. 

The Canada Revenue Agency has also maintained that it will be strictly enforcing actions against members of the “underground economy”, meaning individuals or businesses who aren’t registered and don’t pay taxes. It’s important to note that the business or GST number of the company should be included, and the Canada Revenue Agency has cause to deny any portion of a claim that involves an unregistered or illegitimate business. 

Missed out on the HRTC? 

The qualifying period for the HRTC expired on February 1, 2009. However, there are many other programs that have been implemented by all levels of government to assist you financially in the renovation of your home. These programs include the Government of Canada Retrofit Rebate Program, the Ontario Home Energy Savings Program and the Home Energy Assistance Toronto Program.

All three programs combined allow homeowners to receive up to $11,000 in grants and rebates to renovate their homes to be more energy-efficient, and they don’t expire until March 31, 2011.

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