Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Whether certain renovation costs would qualify for the home accessibility tax credit.
Position: Likely yes, depending on the facts. General comments given.
Reasons: The definitions in subsection 118.041(1).
Author: El-Kadi, Randa
Section: 118.041; 118.2(2)
August 10, 2015
The office of the Honourable Joe Oliver, Minister of Finance, sent me a copy of your correspondence about the home accessibility tax credit (HATC). I apologize for the delay in replying.
I understand your major concern is accessing your bedroom located upstairs in your home, and that you are considering installing either a stair lift or an elevator.
The HATC is a new non-refundable tax credit that will allow seniors, certain family members, or individuals who are eligible for the disability tax credit to claim amounts paid for qualifying renovations or alterations made to their home in Canada that allow them to be more mobile, safe, and functional. The credit is available for amounts paid for work performed or goods acquired after December 31, 2015. Up to $10,000 can be claimed for qualifying renovations or alterations made to an individual’s home in a given tax year, which results in a tax credit of up to $1,500 for that year.
In general, the renovation or alteration must enable the senior or the person with a disability to access their home, be more mobile or functional, or reduce the risk of harm in their home. The qualifying renovation must also be enduring.
Allowable costs must be directly attributable to the qualifying renovation and can include the cost of permits and equipment rentals used for the renovation. However, other costs, such as the cost of recurring or routine maintenance, financing costs, home entertainment devices, household appliances, or expenses incurred mainly for the purpose of increasing or maintaining the value of the home, will not qualify for the credit.
The improvements you are considering may qualify for the HATC if they are made in 2016 or later. The Canada Revenue Agency will provide more information about the HATC at www.cra.gc.ca as it becomes available.
If your renovation expenses qualify for the medical expense tax credit, you can claim both the HATC and the medical expense tax credit for these expenses. You can find more information about the eligibility of home alterations for the medical expense tax credit in Income Tax Folio S1-F1-C1, Medical Expense Tax Credit, available at www.cra.gc.ca/tx/tchncl/ncmtx/fls/s1/f1/s1-f1-c1-eng.html.
I trust the information I have provided is helpful.
Hon. Kerry-Lynne D. Findlay‚ P.C.‚ Q.C.‚ M.P.
Minister of National Revenue
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