If you’re like the majority of Canadians, you are always looking for a way to help your bottom line when tax season comes around. And, if you’re a homeowner, you may also know that there are certain repairs and expenses that can be claimed on your tax return. You may be wondering, however, if a roof repair can be counted among these things.
The answer to this inquiry is “it depends”. In short, while many home repairs aren’t tax-deductible, many home improvements are. In this article, we will go over this differentiation in more detail. This will hopefully provide more clarity to anyone who is in the market for home roof repairs.
Are home renovations tax deductible in Canada?
This is a question a lot of Canadians ask themselves: “can I claim home repairs on my taxes?” The answer is: it depends. If you are performing repairs on a home that you use for personal use, the money you spend is not tax-deductible. However, in some cases, a home renovation may be eligible for a tax deduction.
For example, if you are conducting repairs or renovations to make your home more accessible for an elderly individual or someone living with a disability, these can be claimed on your tax forms. This is known as the HATC or the Home Accessibility Tax Credit.
To be eligible for this credit, homeowners must meet the following requirements:
- The repairs must have the end goal of allowing the individual to be more mobile within their home
- The repairs must be intended to reduce the risk of danger/ harm to the individual in question
- The individual must either be 65 years old or older or be eligible for the disability tax credit at any time in the current tax year
What are the differences between a home repair and home renovation?
Now that we have established that there is a difference between home repairs and home improvements, it is useful to learn how to determine whether you are doing a home repair or home renovation.
The main difference to keep in mind is this: while a home repair is something that is performed to maintain the function of your home, a renovation is performed to improve the function of your home. In other words, a home repair keeps your home the same, while a renovation makes your home better.
Common Home Repairs Include:
- Fixing a leak
- Repairing a hole in the wall
- Replacing broken windows
- Repainting the exterior of your home
- Fixing malfunctioning gutters
Common Home Renovations Include:
- Kitchen remodel
- Bathroom remodel
- Adding a deck
- Home extension
- Improved accessibility for elderly or disabled peoples
Although most home repairs will not be tax-deductible, there are two exceptions to this. The first is that you may be able to claim them if you operate a home office and file taxes as a small business. The second is if you rent out a portion of your home.
Can you claim house repairs on taxes if you operate a home office?
If you operate a business out of all or the part of your home, then you can deduct your home repair costs. In order to qualify, you may be required to prove that you operate a legitimate business and that you use a certain part of your home exclusively for the purpose of the business.
For example, if you have a home office that you operate out of, and you need to repair a window on that office, you will be able to deduct 100% of this repair. However, if you need to repair the windows of your entire house, you will only be able to deduct the portion that was used in your home office.
For a roof, of course, determining which percentage that you can deduct may be more complicated; as you will only be able to claim the roof repairs done on the portion of your house that is used for an office. So, this could affect your overall deductibles.
So, can you claim house repairs on taxes? If you’re one of the many people who have switched to a work-from-home dynamic, you may just be eligible for some tax breaks.
Can you claim house repairs if you rent out a portion of your home?
If you rent out a portion of your home, can you claim house repairs on taxes? Yes, you may be able to deduct your roof repair. This is because it can be deducted as a rental expense. The deduction will only be applied to the portion of the home that you rent out.
Are roof repairs home repairs or home improvements?
As the name would suggest, roof repairs are home repairs, not home improvements. So, as such, it is not likely that you can claim them on your taxes.
However, there are still financial returns that can be gained from performing roof repair. Home improvements will increase the property value of your house which will help increase the return on your property.
Is a new roof tax-deductible in 2021?
The country continues to establish new green initiatives. As such, there have been some tax credits made available to Canadians who are switching to solar powered roofs. Canada’s Greener Homes Grant allows homeowners the option to receive financial support from the government. So, if you’re looking to make your home more energy efficient by installing solar panels, you could receive up to $5,000 to go towards your retrofits.
Roof Repairs in Metro Vancouver
If you’re in need of a roof repair in Vancouver, Surrey, Burnaby, or Coquitlam, then Canuck Roofing is here for you. We offer a brand promise that is built on the pillars of quality, transparency, and reliability. We’re also very proud to be trusted by thousands of customers. We would love to see how we can make improvements to your roof.