Frequently Asked Questions for Nursing Home Residents
- Can a resident of a nursing home or similar institution claim the Ontario Property Tax Credit (PTC)?
- If a resident receives some form of government subsidy, can it be included as part of his/her rental payments when calculating the PTC?
- If a nursing home receives some form of government subsidy, can the residents qualify for a PTC?
- How does a nursing home resident identify the rental portion included in the receipt for payment to the home?
- Can a nursing home resident include another residence when calculating a PTC?
- If a spouse or common-law partner has been assigned occupancy to a separate room within the same nursing home, how is the PTC claimed?
Can a resident of a nursing home or similar institution claim the Ontario Property Tax Credit (PTC)?
Yes, a resident can claim the PTC if the institution paid full municipal and school taxes and the resident paid the rental portion included in the total accommodation cost. The resident would then claim the rent paid as occupancy cost.
If a resident receives some form of government subsidy, can it be included as part of his/her rental payments when calculating the PTC?
The rent must not include any accommodation subsidy paid by a government agency (i.e. federal, provincial or municipal). The resident can only use his/her actual payment to the nursing home when identifying the rental portion.
If a nursing home receives some form of government subsidy, can the residents qualify for a PTC?
Yes, as long as the nursing home paid full municipal and school taxes, residents can claim the PTC based on their rental portion of paid occupancy cost.
How does a nursing home resident identify the rental portion included in the receipt for payment to the home?
The rental portion of the nursing home accommodation cost must not include amounts for items (i.e. meals, housekeeping, laundering or other services) other than the occupancy. If a cost break down of the room and board charges is not available, an amount of up to 75% of the resident’s total accommodation payments may be claimed as rent. Since tax credit claims may be subject to audit, residents should keep receipts in case the Canada Revenue Agency asks to see them.
Can a nursing home resident include another residence when calculating a PTC?
A resident can claim a previous principal residence with the cost prorated for the part of the year it was occupied before moving into the nursing home. If the resident has a spouse or common-law partner who continues to reside in the family residence, that individual could claim his/her own PTC. In this case, the Involuntary Separation option is used. Neither spouse includes the net income of the other spouse when determining Net Income for Ontario Property and Sales Tax Credits.
If a spouse or common-law partner has been assigned occupancy to a separate room within the same nursing home, how is the PTC claimed?
Each spouse claims a separate PTC by reporting the rent portion for his/her specific room. In this case, the Involuntary Separation option is used. Neither spouse includes the net income of the other spouse when determining Net Income for Ontario Property and Sales Tax Credits.
