What home improvements don’t qualify?
Things that don’t add to the intrinsic value of your property, or maintenance work which homeowners tend to do fairly regularly anyway, don’t qualify.
Some examples would be:
• Buying furniture and appliances
• Buying tools
• Professional or DIY carpet cleaning
• Hiring a maid service
• Maintenance contracts like furnace or duct cleaning, lawn care etc.
• Financing costs
How do I claim my tax credit?
Tally up those store receipts, professional invoices and rental receipts and enter your total on your 2009 income tax form. The 2009 form will have a special line devoted to the HRTC.
You won’t submit your receipts and invoices with your tax form, but definitely hold on to them in case the Tax Man wants to follow-up with you down the road.
Remember: if you hire a pro, hire a pro
The underground economy flourishes in Canada’s building and home improvement trades. But as anyone who’s seen even one episode of Holmes on Homes knows, you’re better off hiring a legit pro, not some shady discount contractor. Even more so if you want to qualify for the HRTC.
The HRTC will only recognize services rendered by professional contractors (plumbers, electricians, painters, architects, etc.) with registered businesses. Neither that handyman up the street nor your handy brother-in-law can invoice you for work they’ve done on your home, unless they actually have GST registration numbers.
For more information
Visit Canada Revenue Agency’s HRTC webpage at www.cra-arc.gc.ca/hrtc