Can You Claim Your Kitchen or Bathroom Renovation at Tax Time?

Tax Time CanadaThis blog is for general purposes only. You should always consult a tax professional before submitting your return.

In the past year, you’ve had NuStone Transformations renovate your countertops and bathroom for your home.

With the tax deadline fast approaching (Monday, April 30), you may be wondering you can get some of that kitchen renovation cost back by submitting it with your return.

The short answer: It is possible, but it depends.

No longer available: The Healthy Homes Renovation Tax Credit (HHRTC)

In the past, many Oakville, Kitchener, and Toronto residents claimed The Healthy Homes Renovation Tax Credit which:

  • Was available for seniors 65 and older
  • Used towards the cost of making homes safer and more accessible
  • Could return up to 15% of the total cost back to you

Although this tax credit was very popular, as of the 2017 taxation year, The Healthy Homes Renovation Tax Credit is no longer available.

Home Accessibility Tax Credit Expenses (HAEs)

Home accessibility

The Healthy Homes Renovation Tax Credit mentioned above in this blog has been replaced with Home Accessibility Expenses; a Canada-wide deduction which also applies to people who are 65 and older.

However, HAEs has a few differences from the HHRTC, namely:

  • It’s also available to those who quality for the disability tax credit (regardless of age)
  • The house must be owned and inhabited by those attempting to claim HAEs

As for the work itself, it has to meet one of two criteria:

  • Creates accessibility, mobility, or functionality within the home, or
  • Reduces the risk of injury when trying to enter/access the home

So, if wheelchair ramps were installed throughout the home, those would quality.

Same with widening walk-in closet doors to accommodate mobility devices (like a scooter).

You may be able to quality a kitchen or bathroom renovation as a medical expense

Medical expense

Improvements to your home can be deducted from your income tax if they are deemed to be medically important.

In order to do that, you’ll need to have written documentation from your physician.

Should you qualify, many kitchen or bathroom renovations may be applicable, such as:

  • Installing ramps to enter/exit your kitchen or bathroom (if necessary)
  • Lowering the height of kitchen cabinets to make them easier and safer to reach
  • Widening doors and hallways
  • Placing handrails in key locations (very crucial inside the bathroom)

In order to claim you kitchen or bathroom project as a medical expense, the primary reason must be based on health and medicine, not aesthetics and appearance.

Using the cabinet example listed above:

Renovated a rental property? Here’s what you need to know

Let’s say you own a rental property and updated the kitchen and bathroom; are you able to claim those when you submit your tax return?

For rent sign

It depends on whether the work you had done is a current expense or a capital expense.

Here are the differences:

  • Current expense: This is work which needs to be done repeatedly. For example, painting a wooden fence which has been weathered due to sun and rain exposure.
  • Capital expense: This is something which is done very rarely, but provides a lasting benefit. A good example is installing new siding on the outside of your house.

Now, there are some semantics involve with current and capital expenses.

For example, if you had a countertop replacement put into the kitchen of your rental unit, that could be a current expense because:

  • Even though it’s not something you do often, it makes the kitchen nicer (not better).
  • A kitchen countertop is part of the rental unit (not something that can be removed).

Differentiating between current and capital expenses is a bit tricky. It’s best to have a tax expert help you understand what renovation qualifies as which.

Want a new kitchen or a new bathroom? Contact NuStone Transformations

If you’ll be transforming your kitchen and bathroom this year (and who knows, maybe you can claim some of it on next year’s tax return), NuStone Transformations is a great place to start.

We’ve got the products, service, and experience to bring your project to life – on time and with a budget that works for you.

Schedule a FREE in-home consultation. You set the date and time, and we’ll come to you.

There’s no obligation on your part to do – or commit to – anything. It’s just a personalized, one-on-one discussion about your renovation needs.

Book your FREE in-home consultation today.