Now that spring is upon us, it seems like more clients are beginning to budget for those projects around the house that need to be done. Whether it is a complete renovation or smaller projects that have been on the to-do list for some time, the tax credit may provide you the tax break to make these plans reality.
Late last year the provincial government announced the Saskatchewan Home Renovation Tax Credit. This tax credit allows homeowners to claim a 10.5% non-refundable tax credit on up to $20,000 of qualifying home renovation expenses incurred between October 1, 2020 and December 31, 2022, saving them up to $2,100 in tax.
Eligible expenses include permanent additions to the home but not items such as furniture, appliances, hot tubs, tools or maintenance services such as carpet or furnace cleaning. The tax credit can be split among eligible family members, but the total cannot exceed the maximum allowable amount of $20,000.
Click here to view the full bulletin with all the details on qualifying expenses, how the credit is calculated & supporting documentation required. As always, consult your accounting professional to ensure you qualify for the tax credit.