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: Do renovations to float homes or live-aboard boats qualify for the HRTC?
Position: A housing unit includes a houseboat or float home. Renovations to a housing unit that is an eligible dwelling will qualify for the HRTC provided all legislative requirements are met.
Reasons: The HRTC is available to all types of eligible dwellings.
XXXXXXXXXX
Dear XXXXXXXXXX :
The office of the Honourable James M. Flaherty, Minister of Finance, forwarded to me a copy of your correspondence asking if renovations to float homes or live-aboard boats qualify for the new home renovation tax credit (HRTC). Please accept my apology for this delayed response.
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 law. However, the draft legislation publicly released on September 14, 2009, states that expenditures will qualify 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 will 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.
A housing unit includes a houseboat or float home. A float home that is eligible to be your principal residence will qualify as an eligible dwelling for the purposes of the HRTC. Therefore, the related renovation costs will qualify for the HRTC, provided all the other requirements are met.
You state that in your particular case, you pay moorage fees to the XXXXXXXXXX . You may wish to know that it is the published position of the Canada Revenue Agency (CRA) that waterfront property does not form part of your principal residence if the float home rests in a body of water and is not situated on the waterfront property. Therefore, any renovations made to the waterfront property will not qualify for the HRTC.
You can find more information on the HRTC on the CRA Web site at www.cra.gc.ca/hrtc and in the Government of Canada brochure available at www.actionplan.gc.ca/grfx/docs/HRTC_eng.pdf.
I trust that the information provided is helpful.
Sincerely,
Jean-Pierre Blackburn, P.C., M.P.
Minister of National Revenue
Robert Dubis
(905) 721-5191
2009-033117
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