Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: 1. Will renovations to a mobile home qualify for the home renovation tax credit (HRTC)?
2. Will heating the same mobile home with an outdoor wood furnace also qualify for the HRTC?
Position: 1. Renovations to a mobile home that is eligible to be an individual's principal residence will qualify for the HRTC provided all the other requirements are met.
2. Generally yes.
Reasons: 1. A mobile home is eligible to be an individual's principal residence if it is owned by the individual and ordinarily inhabited by the individual, his or her spouse or common-law partner, or his or her children.
2. Outdoor wood furnaces are a specific type of furnace [located outside of the dwelling, rather than in the dwelling.] Furnaces are listed as an eligible expenditure for the HRTC.
XXXXXXXXXX 2009-033810
George A. Robertson, CMA
September 8, 2009
Dear XXXXXXXXXX :
We are responding to your correspondence, which we received on August 13, 2009, asking if renovations to a mobile home and the installation of an outdoor wood furnace to the same mobile home will qualify for the new home renovation tax credit (HRTC).
The proposed HRTC will provide individuals with a temporary 15% non-refundable income tax credit on eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009, and before February 1, 2010, for agreements entered into after January 27, 2009. Taxpayers can claim this credit for the 2009 tax year on eligible expenditures exceeding $1,000, but not more than $10,000, which will result in a non-refundable tax credit of up to $1,350.
The legislation regarding the new HRTC, which was introduced in the federal budget tabled on January 27, 2009, has not yet been made public. However, the Honourable James M. Flaherty, Minister of Finance, has publicly announced that expenditures will qualify if they relate to a renovation or an alteration of an eligible dwelling, including land that forms part of the eligible dwelling, and if the renovation or alteration is of an enduring nature and is integral to the eligible dwelling. Such expenditures will include the cost of labour and professional services, building materials, fixtures, equipment rentals, and permits.
An eligible dwelling is a housing unit that is eligible at any time after January 27, 2009, and before February 1, 2010, to be an individual's principal residence. In general, a housing unit is considered to be eligible to be an individual's principal residence if it is owned by the individual and ordinarily inhabited by the individual, his or her spouse or common-law partner, or his or her children. Therefore, any housing unit that an individual owns and uses personally, including a home and a cottage, qualifies for the HRTC.
A mobile home that is eligible to be your principal residence will qualify as an eligible dwelling for the purposes of the HRTC and providing all other conditions are met, the related renovation costs will qualify for the HRTC. The costs, including installation, of an outdoor wood furnace on land that forms part of an eligible dwelling will also qualify for the HRTC.
You can find more information on the HRTC on the Canada Revenue Agency Web site at www.cra.gc.ca/hrtc.
We trust that the information provided is helpful.
Nerill Thomas-Wilkinson
Acting Manager
for Acting Director
Ontario Corporate Tax Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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