Principal Issues: Do the individual unit owners of a condominium qualify for the HRTC for expenditures incurred for major renovations completed between January 1, 2009 and February 1, 2010 under an agreement signed in 2007?
Position: No.
Reasons: Pursuant to subsection 118.04(1) of the ITA, expenditures for services received or goods acquired under agreements entered into before January 28, 2009, do not qualify for the HRTC.
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Dear XXXXXXXXXX :
Thank you for your correspondence received on February 3, 2010, regarding the new home renovation tax credit (HRTC).
In particular, you want to know if individual unit owners of a condominium corporation will be able to claim the HRTC for expenditures incurred by the corporation for major renovations completed between January 1, 2009, and February 1, 2010, under an agreement signed in 2007.
The legislation regarding the 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.
You can find more information on the HRTC on the Canada Revenue Agency 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 I have provided is helpful.
Yours sincerely,
Keith Ashfield
Minister of National Revenue
Ananthy Mahendran
(905) 721-5204
2010-035644