Overview
Did you know that renovations that you’ve done to your home can lead to significant savings on tax? Well, Saskatchewan homeowners can enjoy a special tax credit dubbed “Saskatchewan Home Renovation Tax Credit” for home improvements.
The temporary tax credit was introduced in 2020. There are however plans to make it permanent. Besides the timeline qualifications, there are other eligibility requirements to consider. What’s more, not every single expense qualifies. You also need to have the right documentation to claim this tax credit.
Below is everything you need to know about the Saskatchewan Home Renovation Tax credit and related credits, including the home accessibility tax credit. Let’s begin with a definition.
What is the Saskatchewan Home Renovation Tax Credit?
The Saskatchewan Home Renovation Tax Credit is a provincial tax credit allowing Saskatchewan homeowners to claim a percentage of their home renovation expenses on their income tax returns i.e., a non-refundable 10.5% provincial tax credit for up to $20,000 in eligible renovation expenses.
Eligibility Requirements
To qualify for the Saskatchewan Home Renovation Tax credit, you must meet the following requirements:
- Claim must be for renovations of your principal residence in Saskatchewan
- Renovation expenses incurred and renovation completed between 1st October 2020 – 31st December 2022
- You must have been the sole or joint owner of the home at the time of renovations
- You/your current/former spouse/common-law partner and your children/common-law partner’s children must have been inhabitants of the home during the tax credit eligibility period
- Claim must also meet the eligible dwelling requirements i.e., involve renovations to the home/dwelling and/or land forming part of the dwelling
Important: It’s worth noting that the above eligibility requirements are summarized. We recommend you talk to home renovation tax credit experts in Saskatchewan to see if you may have an eligible home renovation tax credit claim, especially for specific renovations including those that improve accessibility.
Home Accessibility Tax Credit for Seniors
HATC or Home Accessibility Tax Credit is a special federal government tax credit for Canadians who have renovated, are renovating, or planning to renovate their homes or a family member’s home to make it more accessible. Through HATC, it is possible to enjoy up to $3,000 in savings. The credit gives qualified/eligible individuals a credit of 15% for eligible renovations up to $20,000.
HATC was introduced in 2016 as a yearly tax deduction. The credit is for individuals aged 65 years or more at the end of a given year or those who qualify for DTC (disability tax credit) at any time during the year. Eligible individuals include the family of qualified individuals i.e., spouse, children, or siblings.
Home Accessibility Tax Credit Eligible Expenses
Generally, the renovations that qualify help improve access to a home or reduce the chances of injury. The expenses also need to be for work done/goods acquired in the specific tax year. Typical eligible expenses include:
- Installing safety rails and grab rails
- Installing accessible shower pans
- Procuring roll-in shower units for wheelchairs
- Installing wheelchair lifts
- Labour costs for professionals
- Costs for widening doorways
There may be other eligible/qualifying expenses. Talk to Saskatchewan tax credit experts to get the full list and see if your expense is claimable. Experts will also highlight ineligible expenses i.e., the cost of labour for DIY projects, financing costs, construction equipment costs, and routine repairs/costs i.e., carpet cleaning, furnace cleaning, pool cleaning, etc.
Home Accessibility Tax Credit Examples: Claiming
Renovations that directly make a home accessible are likely to qualify. You can claim your credit directly from the CRA (Canadian Revenue Authority) website. However, the process can be complex. You also need to provide supporting documentation like vendor information including HST registration numbers, description of purchased goods, dates, amounts, and proof of payment.
Given the potential complexity of home renovation tax credits, the importance of seeking tax filing expertise can’t be overlooked. Contact a tax filing expert in Saskatchewan to understand everything about the Home Accessibility Tax Credit from eligibility to allowable expenses and claiming.
Final Thoughts
Tax credits are a great way to save. However, you need the right information to take advantage of them. If you have renovated your Saskatchewan home in the past or currently for aesthetic reasons or accessibility reasons, you may have unclaimed tax credits. While you can pursue tax credits on your own, we suggest you get professional help.
Murray, Sen & Associates: Leading Trusted Saskatoon Accountants offering Tax Filing Services and Other Comprehensive Accounting Solutions
Need professional help discovering if you have unclaimed tax credits? Talk to Murray, Sen & Associates. Receive tax planning services among other comprehensive accounting solutions to help you gain financial leverage and success. The firm serves both individuals and businesses through its team of experienced and dedicated accountants among other financial professionals.
Schedule a consultation. You can also call: 306-653-7800 or visit in person. Ask related questions i.e., annual tax return filing, unused credits, Saskatchewan low-income tax credit, federal credits i.e., green tax credits, first-time homebuyers tax credit, other non-refundable tax credits i.e., credits for investments made, and more.
Sources
Saskatchewan: https://www.saskatchewan.ca/residents/taxes-and-investments/tax-credits/home-renovation-tax-credit