If you are making your home safer or more accessible for seniors or the disabled, you may qualify for a new tax credit established in 2016. You must be a senior or hold a valid disability tax certificate or show proof that you are supporting an individual who is a senior or is disabled, you can claim up to $10,000 in expenses according to HATC (Home accessibility tax credit).
Another type of renovation that permits you to make a claim for tax deductions is the Medical Expenses Tax Credit. If you have a mobility issue or impaired mobility that require you to make renovations and ensure the home is more accessible, you may qualify. The government provides an extensive list of eligible medical expenses that can be claimed and are not allowed to be claimed. Bear in mind that medical expense reimbursements must fall within 12 months, with the period ending in the current tax year.
If you have a rental property, you can claim interest on any money you loan to make improvements to the home or property. You would need to use the T776 tax form to report rental income and expenses. You can consult a tax specialist for more details regarding claiming expenses for rental properties.
If you run your business out of your home, you may also claim certain expenses for repairs and maintenance. You could consult a tax specialist to determine if painting your home qualifies based on your type of home business.
Many people recall a home renovation tax credit from 2009. This permitted a variety of home improvements such as renovating your kitchen, installing new flooring, painting the interior and exterior of the home and many others. However, this tax credit was only set up by the Canadian government for one year, and it ended in 2010.
There are some provincial specific tax deductions that can also be worth investigating, especially in Ontario and British Columbia. Another exception to note is that when buying a new home that has a lot of renovations, the sale is subject to the HST. Builders are also subject to HST on the lumber and other materials that they may purchase to build or a renovate a home. This may be something to look into if you have just purchased a recently renovated property.
Ultimately, if your home is your primary residence, it generally is quite difficult to claim tax deductions for renovations, unless you meet one of the requirements discussed above. Despite this, one way to help offset the costs could be a Home Buyer’s Plan. If you have a retirement savings plan, you can withdraw up to $25,000 to help finance construction of a home. Certain conditions apply, but this might be another program to investigate if the painting project will be part of a larger home construction project. Madani Group and their team of experienced Winnipeg painters can help you with your painting questions.