Koroll & Company Blog

What is the Multi Generational Home Renovation Tax Credit?

[fa icon="calendar"] Mar 8, 2023 10:00:00 AM / by Koroll & Company

MultiGiven Canada’s current housing crisis, it shouldn’t come as a surprise that people are looking for creative ways to reduce the cost of owning a home. For some, this includes having multiple generations under the same roof. 

Understanding that multigenerational homes are a viable option for many, the government is introducing the Multi Generational Home Renovation Tax Credit. 

As the name suggests, the Multi Generational Home Renovation Tax Credit is a tax credit available to taxpayers who renovate their homes to accommodate multiple generations of family members. More specifically, it will allow taxpayers to add an additional living space to their home so that an elderly or disabled adult relative can move in with them. 

This living area can be in the form of a “granny flat”, which is a self-contained unit in a separate building on the same property. It can also be an addition added onto your home or the creation of a secondary living space within an existing dwelling. 

The only requirements, regarding the self-contained living area, are that it must have a: 

  • Private entrance 
  • Kitchen 
  • Bathroom 
  • Sleeping area 

As these types of renovations and projects can add up quickly, the government is offering a 15% refundable tax credit on up to $50,000 worth of eligible expenses. This will result in a maximum tax credit of $7,500. If any amount of credit remains after your tax owing is equal to $0, it will be refunded back to you. 

Eligible expenses will include: 

  • Labour and professional services 
  • Building materials 
  • Fixtures
  • Equipment rentals 
  • Permits 

The Multi Generational Home Renovation Tax Credit will be available starting in 2023 and can be claimed for the tax year in which the project passes final inspection. 

For more information on the tax credit and for help planning, please contact us today

Book A Free Consultation

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.

About Koroll & Company

At Koroll & Company we grow our firm through satisfied clients referring us as a trusted accounting firm to their friends, family members and associates. The only way we know how to achieve this is strive to exceed your expectations and provide you with exceptional service. We have 20+ years servicing Newmarket, ON and the surrounding areas, and look forward to servicing you next. So give us a call and speak to a friendly staff member from Koroll & Company today!

Topics: Tax Deductions, Tax Tips

Koroll & Company

Written by Koroll & Company