3.5k
Daycare and childcare providers in Winnipeg, Toronto, Vancouver, Ontario etc. in CanadaGarderies à Montréal ou au QuébecFind daycare or childcare providers in the USA
Forum control
+ Reply to Thread
Page 1 of 2 1 2 LastLast
Results 1 to 10 of 12
  1. #1
    Starting to feel at home...
    Join Date
    Nov 2015
    Posts
    119
    Thanked
    47 Times in 33 Posts

    Claiming Renovations

    I understand that one can claim home renovations on their income tax if it's related to daycare. Do one know how much (or what percentage) one can claim? In my case, it's a washroom that will be primarily used by the daycare kids. We haven't started the renos yet and are still debating what we want done, so I am just curious for the future.

  2. #2
    Euphoric !
    Join Date
    Sep 2013
    Posts
    1,670
    Thanked
    629 Times in 475 Posts
    I claim all house renos. I am not sure what percentage my accountant uses but what I do is make a list of all home renos and a separate list of all daycare space renos. I give these to my accountant with all my other totals and he takes it from there.

  3. #3
    Euphoric !
    Join Date
    Jan 2015
    Posts
    1,305
    Thanked
    487 Times in 369 Posts
    Might want check with CRA.

    We were told we not able claim renovations because it increase value of our asset (house). We were told we can claim maintenance but not improvement.

    When we pave our driveway, CRA were clear we not allowed to claim even percentage of it. They say if we added more gravel to drive to replace what wash away over years, that fine to claim as normal percentage but paving mean improving what we had and improving value of personal home and not able to claim. He did say once it was paved, when we had it sealed after for maintenance, then we can claim that. Same when we check about changing from carpet to hard wood in main living room. We told that improvement not maintenance and so not allowed to claim.

    We do claim all house maintenance like painting, carpet cleaning, when air vents cleaned as percentage. We do claim all household maintenance for dedicated daycare space at 100% (that just the guest room for us which is nap room).

  4. #4
    Euphoric !
    Join Date
    Feb 2014
    Posts
    1,340
    Thanked
    751 Times in 483 Posts
    Are you only going to do the reno if it is claimable? I would be careful about doing any home renos with the expectation to have it claimable. I think this is an area that is greatly misunderstood by many and I can't help but feel that even different tax accountants might do things differently. If you plan to do the reno anyways I would do it and just consider it a bonus come tax time if you successfully can claim it.

    I recall a tax course I took for home daycare noted that having new carpet installed was not claimable (like Suzie said, something about it improving the house) BUT if you buy a rug the exact size of the room and just lay it down (don't 'install' it) then it is claimable.

  5. The Following User Says Thank You to Lee-Bee For This Useful Post:


  6. #5
    Euphoric !
    Join Date
    Jan 2015
    Posts
    1,305
    Thanked
    487 Times in 369 Posts
    Yes, this what we told too.

    Same when we did our back deck. We made it bigger than it was and it was bit rickety due to age. CRA said repairing the existing structure is maintenance. Because it would be used by both daycare and family, then we could claim maintenance of it at usual percentage. Could claim all material for repairs, replacement wood where needed, screws, stain when done, that all fine.

    But the addition bit would be an improvement. It not maintaining what we had but new and better than what we had. That potentially mean home improvement boost value of asset. It not claimable because our house is personal asset not business asset. So the wood, screws, stain for the new part could not be claimed.

  7. #6
    Starting to feel at home...
    Join Date
    Nov 2015
    Posts
    119
    Thanked
    47 Times in 33 Posts
    Thanks for the information ladies! I had no idea about the maintenance versus home improvement situation. I'll have to look into it further.

  8. #7
    Outgoing
    Join Date
    Oct 2013
    Location
    Manitoba
    Posts
    462
    Thanked
    196 Times in 147 Posts
    I could be wrong, but I think I know what the reasoning is behind it. If you do something new, like pave the driveway, you're improving the house. When you've increased the value on your house, and claimed it on your taxes as a business expense, then you are no longer able to sell your house and keep the profit tax free. The taxes you'd pay on the house profits are way higher than any potential savings from claiming the reno.
    Again, I could be wrong. I think an accountant friend of mine explained it that way, but it was s long time ago.

  9. #8
    Euphoric ! bright sparks's Avatar
    Join Date
    Feb 2011
    Posts
    2,074
    Thanked
    807 Times in 564 Posts
    It's tricky for sure! When I moved into my current home in 2012 there was no daycare space. I did it out of the master bedroom space for the first 12 months and the small dining room, 8x11 was my main bedroom on the ground floor. We ended up relocating the laundry room from next to the DR to the basement. We then knocked the wall down and made it into one room. Now it is a main floor family room, currently used as a daycare room. We did all the work ourselves so we haven't claimed a renovation as such, but DIY supplies related to this project. I understand that the CRA could say that this increases the value of our home but Id argue not as we lost a main floor dining room and laundry room to gain a family room. Additionally, we didn't pay any labor charges, and just claimed the individual items like drywall, compound, timber, trim, paint, light fixtures etc. It was also an absolute necessity for me to be able to do daycare and it is an exclusive space.

  10. #9
    Euphoric !
    Join Date
    Sep 2013
    Posts
    1,670
    Thanked
    629 Times in 475 Posts
    That's why I just give everything to the accountant and let him do his thing.

    We do all work ourselves so it's only ever materials that we claim but still it all adds up - usually a few thousand a year. CRA won't know what I had before so how will they know the material wasn't used for repairs?

    I am pretty sure when I opened my daycare my accountant wrote off a lot of my renos for the basement. We added a sink and counters to the space, railings on the stairs etc. 2 years ago we had a full basement Reno as the daycare space flooded. It was all paid through insurance so nothing was claimed on my taxes. I did put up a pile of shelves in my laundry room and basement bedroom closet that I have every intention of claiming this year. It's because of daycare I desperately need it!

  11. #10
    Shy
    Join Date
    Jun 2016
    Posts
    6
    Thanked
    1 Time in 1 Post
    You can't claim renovations after you've the business is in operation. Only can claim maintenance or repairs.

    My husband is a tax consultant and prepare tax returns with daycare business.

Similar Threads

  1. Claiming childcare tax credits
    By admin in forum Financial aid for parents
    Replies: 11
    Last Post: 07-20-2020, 04:51 AM
  2. Taxes...claiming food
    By sandylynn in forum Managing a daycare
    Replies: 20
    Last Post: 04-26-2017, 12:37 PM
  3. Claiming used items??
    By 5 Little Monkeys in forum Managing a daycare
    Replies: 4
    Last Post: 03-07-2014, 07:18 AM
  4. Claiming A Helper?
    By ttremble88 in forum Managing a daycare
    Replies: 3
    Last Post: 02-13-2014, 01:29 PM
  5. Claiming Used Items
    By KingstonMom in forum Managing a daycare
    Replies: 2
    Last Post: 11-23-2011, 10:21 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

A few tips...

Do not hesitate to refer to this article to help you choose a daycare provider, know which questions to ask, have an idea of what to look for...
Did you know?
DaycareBear is also available in Quebec (in French) and in the U.S!
Simply click on the corresponding flag in the upper-left corner.
Partner in your
search for a daycare provider