Renovation or Construction Expenses

Are renovation or construction expenses CRA eligible in Canada?

Conditionally. Amounts paid for changes that give a person access to — or greater mobility or functioning within — their home are eligible under the Medical Expense Tax Credit (METC) when the person has a severe and prolonged mobility impairment or lacks normal physical development. These costs can be reimbursed through a Health Spending Account (HSA).

Costs for renovating or altering an existing home, or the incremental costs in building the person's main place of residence, may be claimed. The amounts paid, minus any related rebates such as GST/HST, are eligible.

Renovation or construction expenses must be reasonable and meet both of the following conditions:

1. They would not normally be expected to increase the value of the home.
2. They would not normally be incurred by persons who have normal physical development or who do not have a severe and prolonged mobility impairment.

What Qualifies

• Buying and installing outdoor or indoor ramps where the person cannot use stairs
• Enlarging halls and doorways to give the person access to the various rooms of their home
• Lowering kitchen or bathroom cabinets so the person can use them
• Other modifications that give a person with a mobility impairment or lack of normal physical development access to or greater mobility within their home
• The incremental cost of building accessibility features into a new main residence
• The amounts paid minus any GST/HST rebates received

What Does Not Qualify

• General home renovations without an accessibility purpose
• Renovations that would normally be expected to increase the value of the home
• Renovations that persons without a mobility impairment or developmental condition would normally incur

Good to Know

• Other impairments may also qualify: While wheelchair-related renovations are a common example, renovations related to other types of impairment may also qualify. In all cases, you must be able to show that the person's particular circumstances and the expenses meet all conditions.
• Keep a breakdown of costs: Obtain itemized receipts from contractors and keep all supporting documents.
• HATC: If the renovation expenses also qualify for the Home Accessibility Tax Credit (HATC), you can claim both the HATC and the METC for the same expenses.
• GST/HST rebates: Reduce the claimed amount by any related GST/HST rebates received.

Frequently Asked Questions

Are renovation or construction expenses CRA eligible?

Conditionally. The renovation must give a person with a severe and prolonged mobility impairment (or who lacks normal physical development) access to or greater mobility within their home, must not normally increase the home's value, and must not be the type of expense a person without the impairment would incur.

Can I claim home renovation expenses through my HSA?

Yes, if the renovation qualifies under the METC rules. Submit itemized receipts and documentation showing the disability-related purpose to your HSA administrator.

Can I claim both the HATC and the METC for the same renovation?

Yes. If the renovation qualifies for both the Home Accessibility Tax Credit and the Medical Expense Tax Credit, the CRA allows you to claim both.

Source

Based on the CRA's official eligible medical expenses list and Income Tax Folio S1-F1-C1, "Alterations to an existing dwelling or construction".