The Tenant Protection Act, 1997, (Act) classifies Highview Residences as a “care home”. A “care home” is defined to be: “…a Residential complex that is occupied… by persons for the purpose of receiving care services…”. Care services are defined to be, “health care services…or services that provide assistance with the activities of daily living”. As a care home, we provide assistance with activities such as personal care, meals, programs and recreation, housekeeping, and laundry to our residents. The Act identifies two components to your monthly fee:
- Rent includes “…any consideration paid…for the right to occupy a rental unit…”.
- Service fee is “…an amount that a landlord charges a tenant of a rental unit in a care home for care services or meals”.
A portion of the service fee may be deductible for income tax purposes. Highview will work with you to understand your status with Canada Revenue Agency, and if a portion of your monthly fee is deductible for income tax purposes the proper documentation will be made available to you for that purpose. Highview will provide you with a letter, which allocates the monthly fees, paid the previous year into the rent portion and the service portion. This letter serves as support for your claim for expenses incurred as Medical Expenses on the resident’s tax return.