As Canadians, we pride ourselves on being inclusive and accessible to everyone, including those with disabilities. The government recognizes this and has introduced the Home Accessibility Tax Credit (HATC) to help seniors and people with disabilities make their homes more accessible.
The HATC allows eligible individuals to claim up to $10,000 in expenses for renovations or alterations made to their principal residence. These expenses must be directly related to improving accessibility, mobility, or safety within the home. Some examples of eligible expenses include the installation of wheelchair ramps, grab bars, and walk-in bathtubs.
To be eligible for the HATC, you must meet the following criteria:
- You are 65 years of age or older at the end of the tax year, or you have a qualifying disability.
- You own the home or have the right to undertake the renovations as a tenant.
- The renovation work is completed and paid for in full.
It’s important to note that the HATC is a non-refundable tax credit, which means it can only be used to reduce your tax payable to zero. If you have no tax payable, you will not receive a refund for any unused portion of the credit.
Another important thing to keep in mind is that not all renovation expenses are eligible for the HATC. For example, repairs and maintenance are not eligible, nor are renovations that increase the value of your home. Additionally, expenses for the construction of a new addition to your home are not eligible.
If you are planning on making renovations to your home to improve accessibility, it’s important to keep detailed records of all expenses incurred. This includes invoices, receipts, and contracts. These records will be necessary when claiming the HATC on your tax return.
In conclusion, the Home Accessibility Tax Credit is a valuable tax credit for seniors and those with disabilities who are looking to improve the accessibility, mobility, and safety of their homes. If you are eligible, make sure to keep detailed records of all expenses incurred and speak to a tax professional for guidance on claiming the credit on your tax return.
If you need assistance with your taxes, contact JTT Accounting. Our team of experienced accountants can help you navigate the tax code and ensure you receive all the credits and deductions you are entitled to. Contact us today to schedule a consultation.