Home Renovation Tax Credit
Renovating your home can be an expensive endeavor. But it is not as expensive as buying a new home. Many individuals, especially seniors above the age of 65, opt for renovations instead of buying a new home. It is more realistic for a senior to invest in renovations rather than a new home. The government of Canada also provides a special home renovation tax credit for such individuals.
Renovating a home enables the individual to keep living in the same residence. They are also not the only ones who benefit from the program as their family members also get the benefits of the tax credit. A person with disabilities and family members living with them can also claim the tax credit.
Home Renovation Tax Credit – What Makes You Eligible?
- Like all government tax rebates and credits, there are some conditions. The conditions that you need to fulfill for claiming renovation tax credits for your home are as follows:
- You must be 65 by the end of the year or older when you file the claim.
- A disabled individual and their family members can also claim the tax credit for renovation
- If you’re a family member who wishes to file the claim, then you must be living with your senior or disabled relative.
- The renovations made must benefit the senior or disabled individual of the residence.
- The income of the senior or disabled individual or the family members living with them does not matter.
- Individuals of all income levels are eligible for the tax credit.
How much can You Claim?
The home renovation tax credit can be claimed at 15%, which is up to 10,000 dollars. For someone who spends the maximum on qualifying renovations will also have their tax bill reduced by 1,500 dollars for that year.
As we have mentioned all about the conditions for qualification and the maximum amount of credit you can get, let’s look at what kind of renovation qualifies you to file the claim.
- The renovations made to the home must in one way or the other improve the quality of life for the senior or disable family member.
- Renovations made to enable first-floor occupancy by the senior or disabled person.
- Installation of handrails in the corridors of your home as well as widening the passageways in your house.
- Grab bars in and around the bathroom, walk-in bathtubs, comfort height toilets, and wheel-in showers.
- Handheld showers that can be mounted on adjustable brackets.
- Addition of leg space under the basis for ease of access while sitting down.
- Hands-free taps moved to the front or side of the basin for ease of access.
- Lowering the existing counters and cupboards in your home and installing new height-adjustable cupboards.
- Pull-out shelves under the counters to enable a seated person to work
- Touch and releases cupboard covers and drawers.
- Widening doors and putting handles on these doors instead of knobs. Doors with easy to operate lock mechanisms.
- Plugs, light switches and other electrical outlets placed at a more convenient height.
- Motion-sensitive lighting and adding additional light fixtures all around the exteriors and interiors of your home.
- The installation of non-slip flooring, especially in the bathroom.
- Automatic garage doors.
Now that you know all about the work that qualifies you for the tax rebate, here are some examples of work that does not qualify. Aesthetic changes in architecture, general renovation, installation of equipment and devices like home security and medical monitoring systems are not accepted.
This is everything to keep in mind when renovating and filing for the home renovation tax credit. You should also provide all the necessary documentation, including invoices, receipts, etc.
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