Are home renovation tax credits required to be shared by two spouses who are living separate and apart because of a breakdown of their relationship without a divorce judgment? CRA responded:
For the purposes of the Act, two spouses who are living separate and apart due to a breakdown of their relationship without a divorce judgment having been granted are still considered to be spouses. However, under an administrative position applicable only for HRTC purposes, we apply the rules that apply to common-law partners who are separated because of a breakdown of their relationship to spouses who are separated because of a breakdown of their relationship without a divorce judgment. For example, we consider two spouses who have been living separate and apart for more than 90 days because of a breakdown of their relationship without a divorce judgment to no longer be qualifying relations within the meaning of subsection 118.04(1). Consequently, they will both be entitled to claim the credit in respect of their qualifying expenditures up to a maximum of $10,000 each.