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  1. #1
    Starting to feel at home...
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    Redone the playroom and living room can i claim the floors?

    Hi everyone
    i just finished redoing the main floor we ripped up our old carpets and put hardwood floors in. My question is can we claming the floors and paint?

  2. #2
    Euphoric !
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    Paint yes you can claim. What you put in the playroom put down under repairs and what you did in the main area of the house goes down under repairs in business use of home. As far as the floors go you can claim same with same so carpet for carpet not the upgrade. In theory then it is only a percentage of the hardwood. At the same time who is to say what went down on the floor so if you want to claim it then it goes into the business use of the home in the sense of a portion based on the hours the kids are in daycare. If the kids don't use some of the upstairs for a lot of play then I wouldn't claim that in the sense that even though they sleep in a playpen in a bedroom it doesn't matter what is on the floor or how chipped the paint is. In areas they use then claim a portion of that. New flooring is a grey area but the booklet from revenue canada does distinguish between replacing and upgrading.

  3. #3
    Euphoric ! mimi's Avatar
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    We replaced carpet in daycare for heated ceramic tiles. Definitely an upgrade but done so for cleanliness and comfort reasons for the kiddies. We claimed it, but shopped for a builders discount and hubby installed it.

  4. #4
    Trace of Angels
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    I went to a workshop through the CCPRN on Daycare as a business. The CRA had a representative in that taught us about what we could and couldn't claim. Paint was one that you could claim. If you do claim flooring just be careful. If you sell your house and this new flooring has added value to your home and you sell your home for more then you paid (so if you make money on the sale or your house) you then run the risk of paying capital gains on the sale of your home. If you are renting then there is no issue here. I am not sure of the fine details of this, this is just how the CRA explained it. I would ask an accountant that knows small business and specifically has experience doing daycare taxes. They usually know a good way around these things :-)

  5. #5
    Expansive... Artsand crafts's Avatar
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    Trace of Angels: I got the same advice from accountants from TurboTax that is the reason I never claimed the expenses for installing a door to keep the backyard enclosed. I did this repair only to make sure it was safe for daycare kids.

  6. #6
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    I thought you couldn't claim floors because they depreciate in value so quickly.

  7. #7
    Euphoric !
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    Even if you get more than you paid for your house at resale the chances that it is because you have a new gate or a new screen door is doubtful. Hardwood floors yes that is an upgrade. What you put into a playroom be it carpet or hardwood is done for the sake of the children. Now having said that the actual creation of a playroom ie finishing the basement is an area where it does increase the value of the home at resale so the cost could be clawed back. The option is to only claim the finishing details as in the basic structure is a home renovation for improvement but paint, finishing, is for the sake of the children.

  8. #8
    Euphoric !
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    It also has to do with depreciation in the sense of things wear out and need replacing and that is where the like with like comes in. We replaced the wooden fence with a new wooden fence and that is ok to claim because it was already there when we bought the house. To add a fence in theory is an upgrade to the property. On the other hand you can argue that something like that is a requirement for doing daycare to protect the children but the amount you claim should be the cost of the cheapest type of fence as in what was good enough to accomplish your task even if you went for something elaborate out of personal want. Hardwood floors tend to come under that rule too in the sense that they are not child friendly.

  9. #9
    Shy notaunicorn's Avatar
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    my accountant said I could not claim the laminate we put down in playroom (was vinyl over concrete before) as it would be a gain when we sold the house. I can claim the paint, furniture etc but not something that went with the house when we sold it.

    kinda dumb if you ask me, as I can claim my fridge and furnace thru CCA (capital cost allowance) but not the flooring I put down to make a better playroom.

  10. #10
    Euphoric !
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    You can claim for maintenance of what you already have but you cannot claim for changes or upgrades. The reason is you own the property so if you upgrade floors from carpet to hardward, your asset increased in price too. You can't have the asset value increase and also claim the costs.

    So yes, you can claim the paint because you are maintaining what you had but no you cannot claim the upgraded floors. Had you put in new carpet, which is replacing not upgrading, you could have claimed the cost of that.

    Another example would be if you had a gravel driveway. You could claim the cost of dumping a new load of gravel on top but if you pave the drive, that's an upgrade and you cannot claim that. However, going forward, if you pay to have the paved driveway sealed in a couple years time, that's maintaining the driveway and the sealing would be claimable.

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