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: Are the costs associated with the purchase and installation of a cupola eligible for the HRTC?
Position: Yes, providing the cupola is permanently affixed to an eligible dwelling.
Reasons: Expenditures that are integral to the eligible dwelling and enduring in nature will qualify for the HRTC.
XXXXXXXXXX 2009-034652
W. King
January 19, 2010
Dear XXXXXXXXXX :
This is in reply to your correspondence dated November 2, 2009, wherein you asked if the costs associated with the purchase and permanent installation of a vented cupola to the garage of your house qualifies for the new home renovation tax credit (HRTC).
The legislation regarding the new HRTC has been enacted and is contained in section 118.04 of the Income Tax Act. The HRTC provides individuals with a temporary 15% non-refundable income tax credit on eligible home renovation expenditures for services received or goods acquired, after January 27, 2009, and before February 1, 2010. However, expenditures for services received or goods acquired under agreements entered into before January 28, 2009, do not qualify for the HRTC. 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.
Under section 118.04, expenditures qualify for the HRTC if they are directly attributable 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 include the cost of labour and professional services, building materials, fixtures, equipment rentals, and permits.
An eligible dwelling is a housing unit located in Canada that is owned by the individual at the time of the renovation, and ordinarily inhabited by the individual, his or her current or former spouse or current or former common-law partner, or his or her children at any time after January 27, 2009, and before February 1, 2010. Therefore, any housing unit that an individual owns and uses personally, including a home and a cottage, qualifies for the HRTC.
Provided the above conditions are met, the costs to purchase and permanently install a vented cupola to your eligible dwelling will qualify for the HRTC.
We trust that the information provided is helpful.
Yours truly,
Nerill Thomas-Wilkinson, CA
Acting Manager
for Acting Director
Ontario Corporate Tax Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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