6 Renovation & Remodeling Contractors tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to renovation & remodeling contractors work, not a general example.
Case Study 1 · Records and systems rebuilt
Books Rebuilt From Source, $12,500 In Unclaimed Input Tax Found — Custom Home Builder, London
Client: A custom home builder · Where: London, Ontario · Engagement: 4 weeks, fixed fee
Unclaimed tax found$12,500
Records rebuilt23 months
ProcessDocumented
The situation
A custom home builder in London, Ontario could not answer basic questions about its own numbers, because sector deductions claimed on a general-business basis rather than the renovation & remodeling contractors rules sat between the bank statements and the ledger.
What we did
We documented the positions to the standard the CRA applies to this sector specifically, then documented the process so the work does not depend on any one person remembering how it was done.
The result
Records rebuilt and reconciled, $12,500 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Client: A drywall subcontractor · Where: Lethbridge, Alberta · Engagement: 6 weeks, fixed fee
Proposed tax cleared$109,000
Review duration6 weeks
OutcomeNo change
The situation
A drywall subcontractor in Lethbridge, Alberta was selected for review after seasonal revenue reported without matching the costs that produced it showed up in the CRA's automated matching. The proposed adjustment on renovation & remodeling contractors accounting and tax came to $109,000.
What we did
We reassigned the asset classes on the CCA schedule and corrected the opening balances. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result
The review closed with no change. $109,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 3 · Structure rebuilt
Corporate Structure Rebuilt For $66,000 Of Annual Savings — Commercial General Contractor, Burnaby
Client: A commercial general contractor · Where: Burnaby, British Columbia · Engagement: 8 weeks, fixed fee
Saving per year$66,000
DocumentationComplete
Transfer basisRollover
The situation
The structure at a commercial general contractor in Burnaby, British Columbia had been set up years earlier for a business that no longer existed, and equipment and asset classes assigned by guesswork rather than the CCA schedule had become expensive.
What we did
We reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result
$66,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 4 · Cash and remittance control
$93,000 Of Working Capital Freed From The Tax Cycle — Roofing Company, Toronto
Client: A roofing company · Where: Toronto, Ontario · Engagement: 7 weeks, fixed fee
Working capital freed$93,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation
A roofing company in Toronto, Ontario was profitable on paper and short of cash every month. A previous accountant with no experience of this sector explained most of the gap.
What we did
We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result
$93,000 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
Case Study 5 · Missed incentive claimed
$32,000 In Credits Claimed That Prior Filings Had Missed — Concrete and Forming Crew, Brampton
Client: A concrete and forming crew · Where: Brampton, Ontario · Engagement: 10 weeks, fixed fee
Credits claimed$32,000
Years adjusted3
Review outcomeNo adjustment
The situation
A concrete and forming crew in Brampton, Ontario had been filing for 3 years without ever claiming the incentives its activity qualified for. Behind that sat development and improvement work written off as ordinary overhead.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then rebuilt the chart of accounts around how a renovation & remodeling contractors business actually earns and spends.
The result
$32,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 6 · Objection and relief
Desk-Review Assessment Of $102,000 Vacated — Residential Framing Contractor, Calgary
Client: A residential framing contractor · Where: Calgary, Alberta · Engagement: 3 weeks, fixed fee
Assessment vacated$102,000
Supporting recordsNow on file
AccountCleared
The situation
A residential framing contractor in Calgary, Alberta was carrying $102,000 of penalties and interest arising from a chart of accounts that told the owner nothing about renovation & remodeling contractors margin, much of it accumulated during a period the CRA itself had delayed.
What we did
We documented the positions to the standard the CRA applies to this sector specifically and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result
The assessment was vacated. $102,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
