PERSONAL TAX TRAINING

MULTIGENERATIONAL HOME RENOVATION TAX CREDIT

The Multigenerational Home Renovation Tax Credit (MHRTC) is a refundable tax credit introduced by the Canadian government to support families in creating secondary housing units for seniors or adults with disabilities. This credit helps to foster family-based care and multigenerational living arrangements.

Eligibility Criteria

To claim the MHRTC, the following criteria must be met:

• Qualifying Individual: A senior (65 years or older) or an adult eligible for the Disability Tax Credit.
• Eligible Dwelling: A home in Canada owned by the qualifying individual or a relative, intended to serve as the principal residence for both parties within 12 months of renovation completion.
• Qualifying Renovation: The renovation must create a self-contained secondary unit for the qualifying individual.

Qualifying Expenses

You can claim up to $50,000 in eligible renovation costs, resulting in a maximum credit of $7,500. Eligible expenses include:

• Labour and professional services
• Building materials
• Equipment rentals
• Required permits

Note: Routine maintenance, appliances, electronics, and costs reimbursed by other programs are not eligible.

How to Claim the Credit

Follow these steps to claim the MHRTC:

• Complete Schedule 12: Report your qualifying renovation expenses.
• Enter the Total on Line 45355: Include the calculated credit in your income tax and benefit return.
• Retain Supporting Documentation: Keep receipts and invoices for verification by the CRA.

Additional Notes

• If multiple people share renovation expenses, the total claim cannot exceed $50,000.
• Separate renovations for multiple qualifying individuals may be eligible in the same tax year.

For more information, visit the CRA's official page on the Multigenerational Home Renovation Tax Credit (MHRTC).