Who is eligible for the HRTC?
Eligibility for the HRTC is family based. A family is generally considered to
include you and your spouse or common-law partner, and your or your spouse's or
common-law partner's children who are under 18 years of age at the end of 2009.
The claim can be split among family members but the total amount claimed cannot
exceed the maximum allowable.
If two or more families share the ownership of an eligible dwelling, each family
can claim its own credit (i.e., each up to $1,350) that is calculated on its
respective eligible expenses.
All expenses must be supported by receipts and acceptable documentation.
Eligible dwellings
An eligible dwelling is a housing unit that is eligible to be your principal
residence or that of one or more of your family members at any time between
January 27, 2009, and February 1, 2010.
In general, a housing unit is considered to be your principal residence when it
is owned by you and ordinarily inhabited by you, your spouse or common-law
partner, and your children. This means that any dwelling that you own and use
personally could qualify, including your home or your cottage.
Cottages
If you own and use your home and cottage personally, eligible expenses incurred
for both properties will normally qualify for the HRTC. Note that the maximum
amount of eligible expenses you can claim for the HRTC is $10,000 per family.
Rental and/or business use of an eligible dwelling
If you earn business or rental income from part of an eligible dwelling, you can
claim the HRTC only for expenses incurred for the personal-use areas of the
dwelling.
For expenses incurred for common areas or that benefit the housing unit as a
whole (such as re-shingling a roof), you must divide the expense between
personal use and income-earning use.
Condominiums and co-operative housing corporations
For condominiums and co-operative housing corporations, your share of the cost
of eligible expenses for common areas qualifies.
Eligible and ineligible expenses
The expenses are eligible when they are incurred in relation to renovations or
alterations to an eligible dwelling (or the land that forms part of the eligible
dwelling) and are permanent in nature. As a general rule, if the item you
purchase will not become a permanent part of your home or property, it is not
eligible. There are items, however, that have been explicitly excluded (see
below).
Due to the large number of expenses that can qualify, it is not possible to
provide a complete list.
Note: Some businesses or individuals may assert that certain items
qualify for the HRTC. It is important to remember that you are responsible for
ensuring that all eligibility requirements are met when you claim this credit on
your tax return.
Examples of eligible expenses
Renovating a kitchen, bathroom, or basement
Windows and doors
New carpet or hardwood floors
New furnace, boiler, woodstove, fireplace, water softener, water heater, or oil
tank
Permanent Home ventilation systems
Central air conditioner
Permanent reverse osmosis systems
Septic systems
Wells
Electrical wiring in the home (e.g., changing from 100 amp to 200 amp service)
Home Security System (monthly fees do not qualify)
Solar panels and solar panel trackers
Painting the interior or exterior of a house
Building an addition, garage, deck, garden/storage shed, or fence
Re-shingling a roof
A new driveway or resurfacing a driveway
Exterior shutters and awnings
Permanent swimming pools (in ground and above ground)
Permanent hot tub and installation costs
Pool liners
Solar heaters and heat pumps for pools (does not include solar blankets)
Landscaping: new sod, perennial shrubs and flowers, trees, large rocks,
permanent garden lighting, permanent water fountain, permanent ponds, large
permanent garden ornaments.
Retaining wall
Associated costs such as installation, permits, professional services, equipment
rentals, and incidental expenses
Fixtures - blinds, shades, shutters, lights, ceiling fans, etc.
Note
Window coverings, such as blinds, shutters and shades, that are directly
attached to the window frame and whose removal would alter the nature of the
dwelling are generally considered to be fixtures (i.e., has become part of the
home) and therefore would qualify for the HRTC. In some circumstances, draperies
and curtains may qualify for the HRTC, if they would not keep their value or
usefulness if installed in another dwelling. If these qualifying criteria are
not met, it is likely that draperies and curtains would not qualify for the HRTC.
Examples of ineligible expenses
Furniture, appliances, and audio and visual electronics
Purchasing of tools
Carpet cleaning
House cleaning
Maintenance contracts (e.g., furnace cleaning, snow removal, lawn care, and pool
cleaning)
Financing costs
Work performed by electricians, plumbers,
carpenters, architects
Generally, work performed by electricians, plumbers, carpenters, architects,
etc. in respect of an eligible expense qualifies.
Family member hired for renovations
Expenses are not eligible if the goods or services are provided by a person
related to you, unless that person is registered for the Goods and Services
Tax/Harmonized Sales Tax under the Excise Tax Act. If your family member is
registered for GST/HST and if all other conditions are met, the expenses are
eligible for the HRTC.
Eligibility period
The HRTC is based on eligible expenses for work performed or goods acquired
after January 27, 2009, and before February 1, 2010, under an agreement entered
into after January 27, 2009, related to an eligible dwelling.
Source:
www.cra-arc.gc.ca
Disclaimer - the above is provided in good faith
and is accurate as of July 15, 2009.
Please check with the above noted website for any changes or updates. You are
responsible for ensuring you meet Canadian tax laws.
