Home Buyers’ Amount
If you purchased a home for the benefit of an individual who qualifies for the Disability Tax Credit, you may claim this amount even if it is not your first home purchase.
This $10,000 tax credit (at the rate of 15 % equals a $1,500 tax reduction) is normally for first time buyers, however if you acquired the home for the benefit of a related person who is eligible for the disability amount you may claim the amount. The purchase must be made to allow the person eligible for the disability amount to live in a home that is more accessible or better suited to the needs of that person. Refer to CRA – Home Buyers’ Amount.
The $10,000 credit is effective 2022. If you are backdating to previous years, the credit is $5,000.
Home Accessibility Tax Credit
This tax credit is for renovations done for the benefit of an individual who qualifies for the Disability Tax Credit.
Did you have home renovations 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 $20,000 worth of renovations ( which equals up to a $3,000 tax reduction). This amount is valid starting in 2022. If you are backdating for previous years the amount is $10,000. For more detailed information consult CRA – Line 31285 Home Accessibility Expenses
Who is a qualified individual?
An individual who is eligible for the Disability Tax Credit (DTC).
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
BC Home Renovation Credit
The BC Home Renovation Tax Credit originally was for seniors, but was extended to families with a member who qualifies for the Disability Tax Credit.
This tax credit which is technically known as The Home Renovation Tax Credit for Seniors and Persons with Disabilities. Eligible renovations include work done after Feb 16, 2016 to:
- improve access to the home or land,
- improve mobility and functions within the home or land, or
- reduce the risk of harm within the home or land.
The credit is worth 10% of the renovation cost to a maximum value of $1,000 for $10,000 worth of renovation costs.
Can you claim this in addition to the federal Home Accessibility Tax Credit?
Yes! Just to be clear, you may claim the same receipts for:
- The federal Home Accessibility Tax Credit ($20,000 x 15%)
- The BC Home Renovation Credit ($10,000 x 10%) and
- A medical expense tax credit (with both federal and provincial components), although this is only for mobility issues
Can we claim this credit for 2016 if we have already filed our return?
Yes! Use the form T1-ADJ which is a simple one page form to claim this credit.
How do I claim this?
Visit Home Renovation Tax Credit for Seniors and Persons with Disabilities for more information.
Be aware if you are using Turbo Tax.
This software incorrectly labels the credit as only “BC Seniors’ Home Renovation Tax Credit” which may cause you to overlook it. If you qualify, you may indeed claim it.
Multi-Generational Home Renovation Tax Credit
Will you conduct renovations to add a living unit within your home to accommodate an adult who qualifies for the Disability Tax Credit?
Starting in the 2023 tax year, a new tax credit is being introduced to help families add a secondary unit to their home for the purpose of allowing an immediate or extended family member to live with them. The family member must be a senior or an adult (age 18 or older) with a disability. A disability is defined as qualifying for the Disability Tax Credit at any time during the year.
This new credit will provide 15% tax credit on expenses of up to $50,000 or in other words, up to a $7,500 tax refund.
The secondary suite must be for a related adult over the age of 65 or an adult with a disability, including a grandparent, parent, child, grandchild, sibling, aunt, uncle, niece, or nephew. The suite must be self-contained and include a separate entrance, bathroom, kitchen and sleeping area. The unit must be inhabited or reasonably expected to be inhabited within 12 months after the renovations are completed.
Sadly, appliances, repairs, maintenance, security, financing costs, housekeeping or other services do not qualify for the credit. If you do the work yourself, you may not claim the labour as a cost, but you may claim permits, building materials, fixtures, plans and equipment rentals. If a family member or friend performs the work, you may claim their labour as an expense only if they have a GST/HST number.
The tax credit may be claimed by a person who lives in the house within 12 months of completed renovation and is:
- An eligible person (the senior or the adult with a disability) or, a spouse of the eligible person or,
- A qualifying relation of the eligible person, who owns the dwelling
Expenses claimed for the Multi-Generational Home Renovation Tax Credit may not also be claimed as a Home Accessibility Tax Credit or a Medical Expense Tax Credit.
CRA has not published detailed information as of the date of this post, but please read the 2022 budget for more information.