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Can you claim a new furnace on income tax?

Posted: Mar 10th, 2013 8:21 pm
by The_One
My parents bought a new furnace last year. Is it possible to claim some credit on their income tax? I heard about a rebate program but I am unsure if this applies to them. How do I go about in entering this info for their taxes. Thanks.

Re: Can you claim a new furnace on income tax?

Posted: Mar 10th, 2013 8:30 pm
by OttawaGardener
No, you can't claim a furnace on your income tax. I don't know about rebate programs (possibly provincial? municipal?)

Re: Can you claim a new furnace on income tax?

Posted: Mar 10th, 2013 10:48 pm
by The_One
I think there was a credit available for the 2011 tax year in Ontario. But I am not so sure of the 2012 tax year. My search comes up empty. Hoping someone here can help.

Re: Can you claim a new furnace on income tax?

Posted: Mar 10th, 2013 11:20 pm
by jedi1648
The_One wrote:
Mar 10th, 2013 8:21 pm
My parents bought a new furnace last year. Is it possible to claim some credit on their income tax? I heard about a rebate program but I am unsure if this applies to them. How do I go about in entering this info for their taxes. Thanks.
Definitely not available for the federal and ontario income tax claims. But, the ontario govt does give rebate on purchase of energy savings furnace upgrade (see below), only if there is an energy audit done BEFORE the energy saving furnace and other items (e.g., windows, toilets, etc) are purchased to record that those items are wasting energy and need upgrades. In short, it may be too late for your parents.

REFERENCE:

Ontario Rebates — The Government of Ontario closed the Ontario Home Energy Audit program on March 31, 2012. This program paid rebates of $150 toward the cost of a home energy audit. A year earlier, the Government of Ontario closed the Ontario Home Energy Savings Program on March 31, 2011. This provincial program provided up to $5,000 in tax-free grants for home energy renovations.
•For more information, call 1-877-732-9888

Qualified homeowners can receive tax-free government grants + rebates for their home energy renovations in Ontario.

• Furnace – install a new high-efficiency gas or oil ENERGY STAR qualified furnace

Re: Can you claim a new furnace on income tax?

Posted: Mar 10th, 2013 11:47 pm
by Mark77
The_One wrote:
Mar 10th, 2013 8:21 pm
My parents bought a new furnace last year. Is it possible to claim some credit on their income tax? I heard about a rebate program but I am unsure if this applies to them. How do I go about in entering this info for their taxes. Thanks.
On a principal residence, no. On a revenue property, subject to capital cost allowance provisions of course for depreciation.

Re: Can you claim a new furnace on income tax?

Posted: Mar 11th, 2013 9:19 pm
by The_One
Thanks for the info everyone. The little research I did shows as such, but needed some confirmation.

Re: Can you claim a new furnace on income tax?

Posted: Mar 14th, 2013 5:36 pm
by SarbCheema
Actually the answer is not that clear cut. Depending on the age of your parents they may actually be able to claim the Healthy Homes Renovation Tax Credit. You can read more about it here: http://www.ontario.ca/taxes-and-benefit ... tax-credit

This credit could be claim if it improves the safety and accessibility of the home. I have claimed this for many of my senior clients. If they have any respiratory problems and this furnace improves berating .... you get the point.

Re: Can you claim a new furnace on income tax?

Posted: Mar 14th, 2013 5:59 pm
by brunes
Your parents may have been thinking about the Home Renovation Tax Credit. That program only lasted for one year.

Re: Can you claim a new furnace on income tax?

Posted: Mar 14th, 2013 9:09 pm
by flickchickca
I believe you may also be able to claim it as a medical expense, if they have a prescription from the doctor.

Re: Can you claim a new furnace on income tax?

Posted: Mar 15th, 2013 7:29 am
by OttawaGardener
flickchickca wrote:
Mar 14th, 2013 9:09 pm
I believe you may also be able to claim it as a medical expense, if they have a prescription from the doctor.
Prescription for a new furnace?
... off to see my doctor.

Re: Can you claim a new furnace on income tax?

Posted: Mar 15th, 2013 2:01 pm
by flickchickca
I noticed it when I was going through the list of medical expenses you can write off... as per the CRA themselves "Furnace - the amount paid for an electric or sealed combustion furnace acquired to replace a furnace that is neither of these, where the replacement is necessary because of a person's severe chronic respiratory ailment or immune system disorder - prescription required."

Re: Can you claim a new furnace on income tax?

Posted: Mar 15th, 2013 3:13 pm
by OttawaGardener
flickchickca wrote:
Mar 15th, 2013 2:01 pm
I noticed it when I was going through the list of medical expenses you can write off... as per the CRA themselves "Furnace - the amount paid for an electric or sealed combustion furnace acquired to replace a furnace that is neither of these, where the replacement is necessary because of a person's severe chronic respiratory ailment or immune system disorder - prescription required."
I learn something every day on this forum!

Re: Can you claim a new furnace on income tax?

Posted: Mar 16th, 2013 10:28 pm
by flickchickca
:D That's the point!

Re: Can you claim a new furnace on income tax?

Posted: Mar 17th, 2013 10:38 pm
by ShopperfiendTO
SarbCheema wrote:
Mar 14th, 2013 5:36 pm
Actually the answer is not that clear cut. Depending on the age of your parents they may actually be able to claim the Healthy Homes Renovation Tax Credit. You can read more about it here: http://www.ontario.ca/taxes-and-benefit ... tax-credit

This credit could be claim if it improves the safety and accessibility of the home. I have claimed this for many of my senior clients. If they have any respiratory problems and this furnace improves berating .... you get the point.
Freudian slip? There seems to be lots of seniors doing a lot of self-righteous berating lately...