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Ontario Tax Credit

Ontario Tax Credit. Ontario Tax Credit. Tax rules in the past When agency’s properties are exempt from paying property taxes, residents cannot include rent payment in their tax returns to claim property tax credit. Some agencies did not issue rent receipts.

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Ontario Tax Credit

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  1. Ontario Tax Credit

  2. Ontario Tax Credit • Tax rules in the past • When agency’s properties are exempt from paying property taxes, residents cannot include rent payment in their tax returns to claim property tax credit. • Some agencies did not issue rent receipts. • Some agencies did issue rent receipts and spelled out the portions of room and board, say 60% room and 40% board. • Some agencies included a statement in the rent receipts / letters: “You may not be eligible to claim property tax credit. Please check with your accountant for eligibility”.

  3. Ontario Tax Credit New Tax Rule from 2011: • In public long-term care housing where institution did not pay full property taxes, residents are eligible to claim Ontario tax credit for their rent payments. • 75% max of the ODSP payment is accepted as rent cost. • Please refer to CRA link for 75% allocation (Page 12): http://www.cra-arc.gc.ca/E/pub/tg/5006-pc/5006-pc-12e.txt

  4. Ontario Tax Credit • Include the amount of 75% ODSP in box 6123 Part A of the ON-Ben Form. • Check box 6118 of the ON-Ben Form to apply for the Ontario energy and property tax credit (OEPTC). • OEPTC consists of two components: Energy component, and Property tax component. • As the condition – you lived in a public long-term care home in Ontario” appears only in the Energy component not the property tax component, our residents only qualify for the Energy component. (see CRA link: http://www.fin.gov.on.ca/en/credit/oeptc/faq.html#q1 • Complete Part B - Declaration

  5. Ontario Tax Credit • Would group homes qualify as public long-term care home for the purpose of Ontario tax credit? • The tax rule does not provide an answer for this question. • Angelica McKay of Christian Horizon – Kitchener has confirmed with CRA that our residents should be qualified for the 75% ODSP claim in box 6123 if a breakdown of room and board is not available.

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