Tax credits and rebates may be available to you as a result of having renovations done in your home. Since these programs are available, be sure to capitalize on them if possible! Here is an overview of tax credits in Canada: https://loanscanada.ca/taxes/home-renovation-tax-credits-in-canada. Here are some highlights:
Substantial Renovation Tax Rebate
The GST/HST new housing rebate program might be of interest to you if your renovations meet certain conditions. The federal government can give you a rebate on part of your tax if you buy a new home, build a new home, or have “substantial renovations” done in your current home.
The criteria is fairly strict as far as the meaning of “substantial”. For example, the renovations must transform at least 90% of your home. So you’re looking at a complete home renovation in that case. And only certain types of spaces are eligible, such as actual “living spaces”, which would not include a basement or garage.
Here is a link for details on this program:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/new-housing-rebate.html
Home Accessibility Expenses Tax Credit
If you’re over 65 or have a disability that inhibits your mobility, you may be able to claim a federal income tax deduction if you have renovations done to your home that are designed to address the disability.
Renovations to improve accessibility and safety would apply, including additions or improvements that provide easier mobility or that make everyday living easier.
There is a limit on how much of your expenses can be used for the tax credit, so make sure to check with your accountant so you don’t go over the allowed amount.
Here is some information from the federal government website for details:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-31285-home-accessibility-expenses.html
NOTE: There is also a British Columbia tax credit program for home accessibility renovations. Check with your accountant if you are thinking of applying for the provincial as well as the federal program.
Multigenerational Home Renovation Tax Credit
This tax credit refers to secondary suite construction to accommodate family members with disabilities. This refundable tax credit allows eligible Canadians to claim up to $50,000 in qualifying expenses for renovation completed.
When preparing your home renovation budget, get advice from an expert so you don’t over- or under-estimate what you may be eligible to claim for later.
Thinking about a home renovation (large or small)? Contact us. We’d love to talk to you about your plans to beautify your home.
