Get up to $1500 with the Home Accessibility Tax Credit
For the first time in recorded Canadian history, citizens over the age of 65 outnumber children under the age of 15. The baby boomers are retiring at record rates and are thinking about home renovations for aging in place. The Canadian government has begun to put more thought into the long-term impact of an aging population on the national and provincial budgets.
They’ve come to realize two things:
Starting in 2016 tax year, they introduced the Home Accessibility Tax Credit (HATC)
To help reduce the tax burden of funding expensive long-term facilities the HATC provides Canadians tax relief on age-proofing their home? Here’s what you need to know:
An individual 65 years of age or older at the end of the tax year
An individual who is eligible for the disability tax credit for the year
If you support a qualified individual listed above, you may also qualify for tax relief.
For complete details on eligibility visit CRA
Your primary residence, if owned by you or your partner, is eligible. If you have more than one eligible home, the maximum claim is still only $10,000 total (e.g., $4,000 for home A and $6,000 for home B).
Other possible eligible dwellings are the homes of caretakers who support qualified individuals. If a caretaker owns their home and the qualified individual ordinarily lives there, it likely qualifies.
Generally, if the renovation is permanent and either helps you access your home or reduces your chance of injury, then it should qualify.
Examples of renovations that should qualify:
Renovations that probably DO NOT qualify:
Always consult the CRA website for the most up to date information on tax credits and how to claim them properly. To claim home accessibility expenses, complete Schedule 12, Home Accessibility Expenses.
Make sure you keep invoices, receipts, and agreements and other supporting documents that clearly identify the type and quantity of goods bought or services provided, in order to fill out the Schedule 12, and have on hand if/when the CRA requests supporting documents.
Some of your renovation expenses may also qualify for the medical expense tax credit, or other provincial accessible home tax credits, which means extra tax relief for eligible home renovations.
See below links for information on provincial level tax credits you could also get for similar expenses:
Tax relief is always welcome, especially when it comes to age-proofing your home so you can age-in-place. We hope you enjoyed reading and we wish you luck in your accessible renovations.
NOTE: For products purchased from Accessibility Professionals that might be eligible for 2016 or 2017 tax year, contact us if you need us to resend your receipt. Remember to keep your receipts for 2018 tax year.