Principal Issues: Do expenditures to renovate a bathroom to install a seat bidet or hand-held bidet qualify for the home renovation tax credit (HRTC)?
Position: Yes, if they are permanent.
Reasons: The installation of a permanent seat bidet or a permanent hand-held bidet in an eligible dwelling will qualify for the HRTC as they are enduring and integral to the dwelling. A seat bidet or hand-held bidet will be considered to be permanent if it is connected to the dwelling's water supply and attached to the dwelling's permanent bathroom fixtures. Portable seat bidets and portable hand-held bidets will not qualify for the HRTC.
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Dear XXXXXXXXXX :
The office of the Honourable James M. Flaherty, Minister of Finance, forwarded to me a copy of your correspondence asking whether the costs to renovate a bathroom to install a seat bidet or hand-held bidet will qualify for the new home renovation tax credit (HRTC). Please accept my apology for this delayed response.
The proposed HRTC will provide individuals with a temporary 15% non-refundable income tax credit on eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009, and before February 1, 2010, for agreements entered into after January 27, 2009. Taxpayers can claim this credit for the 2009 tax year on eligible expenditures exceeding $1,000, but not more than $10,000, which will result in a non-refundable tax credit of up to $1,350.
The legislation regarding the new HRTC, which was introduced in the federal budget tabled on January 27, 2009, has not yet been made law. However, the draft legislation publicly released on September 14, 2009, states that expenditures will qualify if they are directly attributable to a renovation or an alteration of an eligible dwelling, including land that forms part of the eligible dwelling, and if the renovation or alteration is of an enduring nature and is integral to the eligible dwelling. Such expenditures will include the cost of labour and professional services, building materials, fixtures, equipment rentals, and permits.
An eligible dwelling is a housing unit located in Canada that is owned by the individual, at the time of the renovation, and ordinarily inhabited by the individual, his or her current or former spouse or current or former common-law partner, or his or her children at any time after January 27, 2009, and before February 1, 2010. Therefore, any housing unit that an individual owns and uses personally, including a home and a cottage, qualifies for the HRTC.
Providing the above conditions are met, the purchase and installation of a permanent seat bidet or a permanent hand-held bidet in an eligible dwelling will qualify for the HRTC. A seat bidet or hand-held bidet will be considered to be permanent if it is connected to the dwelling's water supply and attached to the dwelling's permanent bathroom fixtures. Portable seat bidets and portable hand-held bidets will 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 provided is helpful.
Sincerely,
Jean-Pierre Blackburn, P.C., M.P.
Minister of National Revenue
Nancy Shea-Farrow
(905) 721-5226
2009-033123