Home Renovation for Accessibility

Most homes are poorly designed for accessibility. Steps are barriers to entrance for wheelchairs, doors are not wide enough, and bathrooms need grab bars. The Disability Support Program is woefully inadequate in providing assistance if you need to make home modifications. The DSP provides a one time contribution of $2,000 for home renovations which will barely cover the cost of a cheap ramp. A modest bathroom adaptation can cost more than $10,000. Ontario pays up to $15,000. What was the government thinking there?

There is some help from Canada Revenue Agency with tax deductions and from CMHC grants.

For income tax, you can deduct as a medical expense “reasonable expenses relating to renovations or alterations to a dwelling” for a person who has a disability. You can also deduct the incremental costs related to building a new house for a person with a disability. See Income Tax Act Alterations to Home per 118.2(2)(1.2) and(1.21) and Interpretation Bulletin IT-519 , paragraph 54.

Taxpayers with disabilities have won rulings where the renovations cost in excess of $80,000. The key is the amount has to be reasonable: Grecian marble tile bathrooms are out. The expense must be related to use by a person with a disability. A Tax Court case in Quebec expanded the interpretation in French to include activities of daily living like adding a clothes washer and a dish washer. That is a little known extra.

Selling an inaccessible home and building a new home is probably cheaper than a major renovation, advice I should have taken myself. You can deduct all special and additional costs for making the house accessible. The best thing to do is get a contractor to give you two quotes: one for the house without the accessible features and one for the accessible house. The difference is tax deductible.

I have a large file on tax topic and cases that have been won against CRA. If you want more information, since the local CRA office may not immediately grant your deduction, send me an email.

There is Federal government money to assist with the renovations through the RRAP-Disabilities and Home Adaptations for Seniors’ Independence programs. Contact your local CMHC office for details. Funds are limited and you may have to wait more than a year. Be persistent.

In any case, carefully research what you need to modify. Try to think out 5 years: will the disability worsen and more be required? CMHC have excellent on-line guides. Check out contractors thoroughly. Some understand disability adaptations: some you have to educate an expensive process. As Mike Holmes says, If you’re going to do something, do it right the first time.