What it is?
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 work performed or goods acquired after January 27, 2009,
and before February 1, 2010 under an agreement entered into
after January 27, 2009.
Eligible expenses:
Eligible expenses
for goods acquired during this period, even if they are installed
after January 2010, will still qualify. If an eligible expense
involves work performed by a contractor or a third party,
and the work is not completed by the end of the eligible
period, only the portion that is completed before February
1, 2010 will qualify even if a payment has been made.
Examples
of eligible expenses that apply to Bouclair products:
- Fixtures – blinds and shades.
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 (i.e. have become
part of the home) 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.
How it works?
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%]. This means
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.
Valid dates:
The HRTC is based on eligible
expenses for work performed or goods acquired after January
27, 2009, and before February 1, 2010. Eligible expenses
for goods acquired during this period, even if they are installed
after January 2010, will still qualify.
Who’s eligible?
Eligibility for the HRTC is family based. Eligible family
members include you and your spouse or common-law partner,
and your or your spouse's or common-law partner's children
who are under 18 years of age at the end of 2009. The claim
can be split among eligible 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 their own credit (i.e., each family
up to $1,350) that is calculated on its respective eligible
expenses.
Save your cash receipts!
All expenses must be supported
by receipts and acceptable documentation. Keep them in case
the government asks to see them.
For more information of
the program, visit: http://www.cra-arc.gc.ca/hrtc/
Download the PDF here. |
