TP-1029.RE - Tax credit for the restoration of a secondary residence

To be entitled to the tax credit for the restoration of a secondary residence, you must meet the following conditions:

• You were resident in Québec on December 31, 2018, or, if you ceased to be resident in Canada in 2018, you were resident in Québec the day you ceased to be resident in Canada.
• You owned or co-owned the eligible dwelling at the time of the flooding and when the expenses were incurred.
• You obtained from the municipality where the eligible dwelling is located a certificate confirming that the land subjacent to the eligible dwelling was hit by flooding that occurred in a territory covered by the Programme d’aide financière spécifique relatif aux inondations survenues du 5 avril au 16 mai 2017 (special financial assistance program for the flooding from April 5 to May 16, 2017) (the Program).
• If your application concerns qualified repair expenditures, you have an expert’s damage assessment report describing the damage caused to the dwelling.
• You are claiming the tax credit for qualified expenditures paid in 2018.

Note
If you are completing the form for a person who died in 2018, the person must have been resident in Québec on the date of his or her death.

For 2018, the tax credit corresponds to 30% of the qualified repair expenditures paid in 2018 to have recognized repair work done. The maximum credit for repair work for 2017 and 2018 is $15,000. The expenditures must be paid by December 31, 2018.

Note
The tax credit has two components: the repair component (for 2017 and 2018) and the post-disaster clean-up and preservation component (for 2017 only). If you paid post-disaster clean-up and preservation expenditures in 2017, you can claim the tax credit under this component for 2017, subject to certain conditions. For more information, see form TP-1029.RE-V for 2017.

To be eligible, the dwelling must meet the following conditions:

• It was damaged by flooding in a region covered by the Program but does not qualify as a principal residence under the Program.
• It is suitable for year-round occupancy and was normally occupied by you at the time of the flooding and when the expenses were incurred.¹
• It was not the subject, before the recognized work began, of a notice of expropriation, a notice of intention to expropriate, a reserve for public purposes, a prior notice of the exercise of a hypothecary right registered in the registry office or any other procedure calling your right of ownership into question.

The work must have been carried out under a contract between a contractor and:²

• you;
• 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.

Important

If your application concerns both 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.

The contractor who did the work:

• must not have been the owner or co-owner of the dwelling, nor the spouse of the owner or any of the co-owners of the dwelling 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, as applicable, 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.

To be recognized, repair work must:

• concern the components listed in Table 1 on page 7; and
• concern damage that a damage assessment expert has attributed to flooding in a region covered by the Program.

Notes Replacing a component mentioned in Table 1 that cannot be repaired also constitutes repair work. If the dwelling was damaged to such an extent that it is preferable to rebuild it, any work to rebuild the dwelling that is attributable to the components listed in Table 1 is considered to have been done to repair the damage to the dwelling.

To qualify for the tax credit, the expenditures must have been paid by:

• you (or your legal representative);
• your spouse when the expenditures were paid;
• any other person who was a co-owner of the dwelling when the expenditures were paid.

Qualified expenditures include:

• the cost of necessary permits, including any studies to obtain them;
• the cost (including taxes) of any goods that:

• were used to carry out the repair work,
• were supplied by the contractor or were acquired from a QST registrant⁴ after the flooding began;

• the cost (including taxes) of the services rendered by the contractor in carrying out the repair work; and
• the cost (including taxes) of the services rendered by a damage assessment expert.

Examples of excluded expenditures:

• expenditures used to finance the cost of services provided by a damage assessment expert or the cost of the repair work;
• expenditures attributable to goods or services supplied by a person with whom you or one of the co-owners is not dealing at arm’s length, unless the person is a QST registrant;
• expenditures incurred to acquire property you used before acquiring it under a contract of lease;
• expenditures related to a part of the dwelling you use to earn business or rental income; and
• expenditures used to calculate another tax credit under Québec legislation.

Condominium

If the eligible dwelling is located in a condominium, qualified expenditures include any expenditure incurred by the syndicate of co-owners, up to the amount of your unit’s share of the expenditure.

In such a case, the syndicate of co-owners must have given you a completed copy of form TP-1029.RE.D-V that describes the work carried out and lists your unit’s share of that expenditure.

To calculate the amounts to enter on lines 70, 71, 72, 86, 87, 90, 91 and 95 of this form, multiply the amounts on lines 70, 71, 72, 86, 87, 90, 91 and 95 of form TP-1029.RE.D-V by your unit’s share of the expenditure.

Code	Component
1	Structure and concrete Foundations, footings, support beams, load-bearing walls, concrete slabs, dry wells, framing, carports and garages forming part of the structure of a dwelling, and basement entryways.
2	Exterior walls Exterior cladding and chimneys.
3	Roofs Roofing materials.
4	Openings Exterior doors, including doors of garages forming an integral part of the structure of a dwelling, and windows.
5	Insulation Structure, wall, ceiling and subfloor insulation.
6	Electricity Electrical lead, systems and connectors.
7	Plumbing Pipes, sewer connections, water connections and sanitary devices.
8	Floors Subfloors and fixed floor coverings.
9	Interior walls and ceilings Gypsum board, plaster and paint on walls and ceilings, baseboards, ceiling mouldings and interior doors.
10	Bathroom cabinets and sinks Counters, drawers, shelves, cabinets and panels.
11	Interior stairways Stringers, runners, risers and handrails.
12	Heating and ventilation Main and secondary heating systems (especially wood stoves), including conduits, firewood, air exchangers and their conduits, natural gas connections and tanks.
13	Equipment Pumps and wet wells, septic tanks, leaching beds, drinking water supply systems, drinking water filtration and treatment systems, hot water tanks and equipment for disabled persons.
14	Incidental structures of a dwelling5 Detached garages, sheds, porches, balconies, decks, patios and terraces.
15	Landscaping work5 Driveways, walkways, fences, walls and slabs on ground.
16	Other landscaping work5 The portion of the land that may reasonably be considered as facilitating the use and enjoyment of the dwelling, trees and hedges.