New tax credit could apply on eligible common area upgrades

New tax credit may apply on common area upgrades

Wednesday, November 11, 2020

Condominium corporations may be able to leverage Ontario’s newly announced Seniors’ Home Safety Tax Credit for qualifying upgrades made in 2021. The one-time personal income tax credit of up to $2,500 for seniors who do not live in care facilities was announced in the Ontario budget last week.

The credit will cover 25 per cent of up to $10,000 worth of eligible capital improvements intended to safeguard seniors and enable mobility and independence within their current principal residence, or a residence they plan to move to before the end of 2023. Senior homeowners and renters are eligible, as are younger owners of intergenerational family homes where seniors reside.

As outlined in the budget document, seniors who own condominiums could pass the credit through to be applied to common area upgrades. “The credit could also be claimed for an individual’s share of improvements done by a condominium corporation, or similar body, to property that includes the individual’s principal residence, provided the improvement meets the eligibility conditions,” it states.

Promised future legislation will provide more details, but qualifying expenses are expected to include:

  • Wheelchair ramps, stair/wheelchair lifts and elevators;
  • Non-slip flooring;
  • Additional light fixtures throughout the home and exterior entrances;
  • Renovations to permit a first-floor occupancy or secondary suite for a senior;
  • Grab bars and related reinforcements around the toilet, tub and shower;
  • Automatic garage door openers; and
  • Modular or removable versions of a permanent fixture, such as modular ramps and non-fixed bath lifts.

2 thoughts on “New tax credit may apply on common area upgrades

  1. Great news. How do we apply for the tax credit for this condominium as we have on our wish list to install a wheelchair accessible ramp to accommodate our residents – mainly seniors.

  2. Do you think a changeover from knob-style door knobs to lever type handles would be covered under this tax exemption?
    Would door thresh-hold replacement to flatten and allow ease of entry/exit for walkers and wheelchairs also qualify?

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