Tax Credit for the Restoration of a Secondary Residence
If you or your spouse paid eligible expenses to restore your secondary residence damaged by the severe flooding that hit a number of Québec municipalities from April 5 to May 16, 2017, you may be entitled to the tax credit for the restoration of a secondary residence.
You can claim the tax credit in your 2017 and 2018 income tax returns only. To receive the amount before filing your income tax return, you can apply for an advance payment of the tax credit.
To claim eligible expenses in 2017, you must have paid the expenses in 2017. Likewise, any expenses you claim in 2018 must have been paid in 2018.
The tax credit has two components:
- the post-disaster clean-up and preservation component (2017 only); and
- the repair component (2017 and 2018).
Whether you are claiming an amount for the post-disaster clean-up and preservation component or the repair component, the work must have been carried out under a contract signed between a contractor and:
- your spouse on the date the contract was signed; or
- any other person who was a co-owner (or the spouse of a co-owner) on the date the contract was signed.
The contractor who did the recognized work under contract:
- must not have been the owner or co-owner of the residence, nor the spouse of the owner or any of the co-owners of the residence, on the date the contract was signed;
- must have had an establishment in Québec on the date the contract was signed; and
- must have held, when the work was done and if the work so required, an appropriate licence issued by the Régie du bâtiment du Québec, the Corporation des maîtres électriciens du Québec or the Corporation des maîtres mécaniciens en tuyauterie du Québec, and must have also obtained licence security, if applicable.
If your application concerns recognized post-disaster clean-up and preservation work and repair work, or if not all the work is recognized work, the contractor must give you a written statement showing the breakdown of the cost of goods and services supplied by the contractor for the different types of work carried out.