Were you thinking of doing some home renovations sometime this year but haven’t decided when to do them? There are two weeks remaining to qualify for the Home Renovation Tax Credit. While this may not be enough time to get a contractor in to finish a job before January 31st, it is still a great opportunity for do-it-yourself renovations.
The Home Renovation Tax Credit provides a 15% tax credit on home renovation expenses over $1,000 and up to $10,000. This maximum of $9,000 equals a tax credit of $1,350. The HRTC is a one time tax credit that was introduced to help encourage spending our way out of the recession. Unfortunately, there has been no mention of continuing this program in the future.
Depending on your comfort level with these projects, simple do-it-yourself renovations could include:
- painting
- tiling walls or floors
- upgrading bathroom or kitchen faucets
- building a deck
- insulating a basement or garage
- laying sod
- upgrading light fixtures
Maybe you’re saving up for your renovations later in the year? While normally I wouldn’t recommend taking on debt, I did calculate that if you borrowed for your renovations, the tax credit would not only pay the interest but could put you ahead if paid off soon enough.
Another benefit of getting your renovations done before January 31st is that many retailers like Rona and Home Depot are providing further incentives to renovate if you use their store to get it done.
So if you’re looking to renovate this year, you might want to consider paying for all your materials this month and claiming a credit up to $1,350. After that, you could even store them in your garage and wait until the summer!
Image by skidrd
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Tom Drake is the owner and head writer of Canadian Finance Blog.
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