Can a qualifying expenditures incurred by an individual qualify as being incurred for home renovation tax credit purposes if a portion of those expenses are reimbursed by an insurance company? CRA responded:
Where renovation work is covered by an insurance policy, then it is a question of fact and law as to which, of the individual and the insurance company, incurred or made the qualifying expenditures related to the qualifying renovation work.
For purposes of the HRTC, it is generally our view that it is the individual, and not the insurance company, who has incurred or made qualifying expenditures as defined in the HRTC in a situation where, among other things, the individual has contracted directly with the contractor, is personally liable for the payment of expenses relating to qualifying renovations, and has ultimately paid for the renovations himself or herself.