The home renovation tax credit is available for Saskatchewan residents making renovations to their principal residence in 2022. (It was also available for expenses incurred between October 1, 2020 and December 31, 2021, so if you forgot, it’s not too late to adjust your 2021 return!)
The 2022 credit is available for expenses incurred above $1,000 and capped at $10,000 – the credit is worth 10.5%, so it can generate tax savings of as much as $945. The credit is non-refundable, so you need to have that much in tax. If you are worried that you won’t be able to fully use the credit, don’t worry you can split the credit with your spouse.
To Qualify for the Home Renovation Tax Credit
- Renovations must be to your principal residence, which must be located in Saskatchewan.
- At the time of renovations, you must own the home.
- You, your current or former spouse or any of your or your spouse’s children must primarily inhabit the home during the eligibility period.
- Renovations must be of an enduring nature and integral to the dwelling or to the land that forms part of the dwelling. Land of one-half hectare or 1.24 acres, including the land where your house stands will generally be considered part of your eligible dwelling for the purpose of this tax credit
You will need to provide Canada Revenue Agency (CRA) documentation of eligible expenses such as receipts or invoices. The document should clearly identify:
- The vendor/contractor including business address (if applicable) their GST/HST registration number
- The type and quantity of good purchased and/or services provided
- The dates when the goods and/or service were purchased or delivered
Items such as furniture, appliances, and routine maintenance don’t qualify, but flooring, furnace, air conditioners, and landscaping do. The Government of Saskatchewan has an extensive list of what qualifies and what doesn’t here.
If you have any questions feel free to reach out to your Virtus Group advisor.