Federal tax changes including the Multigenerational Home Renovation Tax Credit came into effect on January 1, 2023.
If a family decides to add a secondary unit to their home to allow an immediate or extended family member to live with the, this tax credit will cover the eligible construction costs for the same. To be considered for the tax credit, the renovation must be completed in the owner's primary residence where they live with a senior or disabled person.
If the tax credit is approved, it will cover 15 per cent of costs and can be up to a maximum of $7,500. Eligible expenses would cover the cost of labour, building materials and also, equipment rentals and permits.
Expenses that will not be covered under the tax credit include furniture, household appliances, construction and equipment tools, routine repair or maintenance costs, and devices and landscaping or security services.
All expenses for the renovation have to be shown in receipts.
Post Your Comment: