Did you have home renovations during 2016 to:
- Allow a qualified individual to gain access to, or to be mobile or functional within your dwelling, or
- Reduce the risk of harm to the individual within the dwelling or in gaining access to the dwelling?
If so, you may be eligible to claim a tax credit (15%) on up to $10,000 worth of renovations. For more detailed information consult CRA – Line 398 Home Accessibility Expenses
Who is a qualified individual?
An individual who is eligible for the Disability Tax Credit (DTC) for 2016.
Who can claim this tax credit?
- A qualified individual, or
- An eligible individual (for our purposes, someone who is entitled to claim the disability amount for the qualifying individual)
What is an eligible dwelling?
A housing unit that is owned by the qualifying individual or by the eligible individual.
- Expenses are outlays made or incurred during the year that are directly attributed to a qualifying renovation and must be for work performed and/or goods acquired in the tax year.
- For work performed by yourself, you may claim materials, plans, rentals and permits. You may not however claim your own labour or tools as expenses.
- For work performed by a family member, the expenses are not eligible unless the person is registered for GST/HST.
What are some examples of work are applicable to a child with autism?
- A fence to contain a child with elopement issues
- Modifications to the structure to contain a violent or aggressive individual
- Floors that may lessen the risk of injury
What can’t be claimed?
- Home entertainment systems
- Renovations meant to increase the value of the home
Can you double dip?
YES! For those who qualify for renovation costs as a medical expense, both the Home Accessibility Tax Credit and the Medical Expense Tax Credit may be claimed for the same expense. Keep in mind however that the Medical Expense is only for those with mobility issues.
Can you triple dip?
Sure, why not? If you acquired the home for the benefit of a related person who is eligible for the DTC you may be able to claim $5,000 via the Home Buyers Amount even if it is not your first home. The stipulation is the home must be purchased to allow the person with the disability to live in a home that is more accessible or better suited to the needs of that person. Refer to CRA – Home Buyers Amount for more information.