How to Write-Off Taxes from Your Home Renovation Expenses

Are you a senior or eligible for the disability tax credit? Are you looking to renovate your home to make it more accessible for you and your loved ones? Well, we have just the tax strategy for you!

Tax Strategy

In 2015, the federal budget introduced a new non-refundable Home Accessibility Tax Credit that is to begin in 2016. This credit is meant to provide financial assistance to seniors and those eligible for the disability tax credit with some home renovation expenses. This credit is also available to any relatives.

The new tax credit can save you 15 per cent of up to $10,000 of renovation expenses per year, so long as the money was spent for making your home more accessible and functional. In addition, money spent on renovations that reduce the risk of harm to you in and around your home also qualifies. The Home Accessibility Tax credit will apply to renovation expenses paid after 2015. It would be wise for you to delay home renovations until 2016 so that you can get this credit.

In some cases, a renovation expense can qualify you for both the medical expense credit and the Home Accessibility Tax Credit. In this case, both credits can be claimed. Any expenses that include routine maintenance, improvements to your home unrelated to accessibility, and household appliances will not qualify. To learn more about the home renovations tax credit, visit Healthy Homes Renovation tax credit.

So Here’s the Tip:

if you are looking to renovate, it’s best to delay your renovations until 2016 so that you can take advantage of the Home Accessibility Tax Credit.

ABOUT THE AUTHOR

ALLAN MADAN

CPA, CA

Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.

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