Line 398 - Home accessibility expenses

Line 398 - Home accessibility expenses

You can claim an amount for eligible expenses for a qualifying renovation of an eligible dwelling, if you are a qualifying individual or an eligible individual making a claim for a qualifying individual.

The total eligible expenses for an eligible dwelling cannot be more than $10,000 for the year.

The total eligible expenses claimed by a qualifying individual and all eligible individuals for a year cannot be more than $10,000 for a qualifying individual or for the same eligible dwelling even if there is more than one qualifying individual.

If you cannot agree on what amount each person can claim, the CRA will determine the amounts.

A qualifying individual is one of the following:

• an individual who is eligible for the disability tax credit for the year

• an individual who is 65 years of age or older at the end of the year An eligible individual is one of the following:

1. a spouse or common-law partner of a qualifying individual

2. for a qualifying individual who is 65 years of age or older, an individual who has claimed the amount for an eligible dependant (line 305 of Schedule 1), or the Canada caregiver amount for other infirm dependants age 18 or older (line 307 of Schedule 1) for the qualifying individual, or could have claimed such an amount if:

   • the qualifying individual had no income

   • for the eligible dependant amount on line 305 of Schedule 1, the individual was not married or in a common-law partnership

   • for the amount on lines 305 and 307 of Schedule 1, the qualifying individual was dependent on the individual because of an impairment in physical or mental functions

3. an individual who is entitled to claim the disability amount (on line 318 of their Schedule 1) for the qualifying individual or would be entitled if no amount was claimed for the year by the qualifying individual or the qualifying individual's spouse or common-law partner

An eligible dwelling is a housing unit (or a share of the capital stock of a co-operative housing corporation that was acquired for the sole purpose of acquiring the right to inhabit the housing unit owned by the corporation) located in Canada and meets at least one of the following conditions:

• it is owned (either jointly or otherwise) by the qualifying individual and it is ordinarily inhabited (or is expected to be ordinarily inhabited) i n the year by the qualifying individual

• it is owned (either jointly or otherwise) by the eligible individual and it is ordinarily inhabited (or is expected to be ordinarily inhabited) in the year by the eligible individual and the qualifying individual, and the qualifying individual does not own (either jointly or otherwise) and ordinarily inhabit another housing unit in Canada throughout the year

  Note
  Generally, the land on which the housing unit stands, up to. hectare (1.24 acres) is considered part of the eligible dwelling.

A qualifying individual may have only one eligible dwelling at any time, but may have more than one eligible dwelling in a year (for example, in a situation where an individual moves in the year). When a qualifying individual has more than one eligible dwelling in a year, the total eligible expenses for all such eligible dwellings of the qualifying individual cannot be more than $10,000.

A qualifying renovation is a renovation or alteration that is of an enduring nature and is integral to the eligible dwelling (including the land that forms part of the eligible dwelling). The renovation must:

• allow the qualifying individual to gain access to, or to be mobile or functional within, the dwelling

• reduce the risk of harm to the qualifying individual within the dwelling or in gaining access to the dwelling

An item you buy that will not become a permanent part of your dwelling is generally not eligible.

Eligible expenses

These expenses are outlays or expenses made or incurred during the year that are directly attributable to a qualifying renovation of an eligible dwelling. The expenses must be for work performed or goods acquired in the tax year.

If you do the work yourself, the eligible expenses include expenses for building materials, fixtures, equipment rentals, building plans, and permits. You cannot claim the value of your labour or tools.

Expenses are not eligible if the goods or services are provided by a person related to the qualifying or eligible individual, unless that person is registered for goods and services tax/harmonized sales tax (GST/HST) under the Excise Tax Act. If your family member is registered for the GST/HST and if all other conditions are met, the expenses will be eligible for the home accessibility tax credit.

Generally, paid work done by professionals such as electricians, plumbers, carpenters and architects for eligible expenses qualifies as eligible expenses.

You may have an eligible expense that also qualifies as a medical expense. If so, you can claim the expense as a medical expense and a home accessibility expense. For information about medical expenses, see lines 330 and 331 of this guide.

Ineligible expenses

The following expenses are not eligible for the home accessibility tax credit:

• amounts paid to acquire a property that can be used independently of the qualifying renovation

• the cost of annual, recurring, or routine repair or maintenance

• amount paid to buy household appliances

• amount paid to buy electronic home-entertainment devices

• the cost of housekeeping, security monitoring, gardening, outdoor maintenance, or similar services

• financing costs for the qualifying renovation

• the cost of renovation incurred mainly to increase or maintain the value of the dwelling

Condominium and co-operative housing corporations

For condominium or co-operative housing corporations, your share of the cost of eligible expenses for common areas qualifies for the home accessibility tax credit.

Other government grants or credits

The home accessibility tax credit is not reduced by assistance, including a grant, forgivable loan, or tax credit, from the federal or a provincial/territorial government.

Vendor rebates or incentives

Eligible expenses are generally not reduced by reasonable rebates or incentives that the vendor or manufacturer of goods or the provider of the service offers.

Business or rental use of part of an eligible dwelling

If you earn business or rental income from part of an eligible dwelling, you can only claim the amount for eligible expenses incurred for the personal-use areas of your dwelling.

For expenses incurred or goods acquired for common areas or that benefit the housing unit as a whole (such as a ramp or handrails), you must divide the expense between personal use and income-earning use. For more information, see Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income or Guide T4036, Rental Income.

Eligible expenses must be supported by acceptable documentation, such as agreements, invoices, and receipts. They must clearly identify the type and quantity of goods bought or services provided, including, but not limited to, the following information, if it applies:

• information that clearly identifies the vendor/contractor, their business address, and, if applicable, their GST/HST registration number

• a description of the goods and the date when they were bought

• the date when the goods were delivered (keep your delivery slip as proof) or when the work or services were performed

• a description of the work done, including the address where it was done

• the amount of the invoice

• proof of payment. Receipts or invoices must show that bills were paid in full or be accompanied by other proof of payment, such as a credit card slip or cancelled cheque

• a statement from a co-operative housing corporation or condominium corporation (or, for civil law, a syndicate of coowners) signed by an authorized individual identifying:

  • the amounts incurred for the renovation or the alteration work

  • as a condominium owner, your part of these expenses if the work is done for common areas

  • information that clearly identifies the vendor/contractor, their business address and, if applicable, their GST/HST registration number

  • a description of the work done or services performed and the dates when the work was done or the services were performed