What is the Multigenerational Home Renovation Tax Credit?
The face of Canadian homeownership is changing. More and more families are taking care of older relatives, leaving many homeowners struggling to make space. To tackle this challenge, the Canadian government has developed a new program designed to make adding space on your home more affordable.
As of January 1, Canadians have a new tax credit to help make it easier to care for older relatives in their homes.
The multigenerational home renovation tax credit provides tax incentives towards the building of a secondary suite onto an existing home for family members living with seniors or an adult with disabilities.
The credit provides a 15 percent tax refund on expenses to build the secondary suite of up to $50,000 to a maximum of $7,500.
Who is Eligible?
To ensure that eligible Canadians are able to access the multi-generational home renovation tax credit, special criteria has been put in place. To access the tax credit, the secondary suite can only be built for adults related to the homeowner.
The adult must be over the age of 65 or living with a disability. This may include a grandparent, parent, child, grandchild, sibling, aunt, uncle, niece, or nephew. Those outside of these criteria is not covered by this tax credit.
What are the Requirements?
Building a secondary suite may seem like a stressful undertaking, but it is actually one of the easiest ways to increase the space in your home.
The home renovation tax credit outlines certain types of secondary suite options, providing homeowners with the opportunity to make accommodating upgrades to their homes without having to go through the stress and hassle of moving. The suite must be a self-contained housing unit.
This means that it would be similar to an apartment suite in your home that allows the person living in it the privacy and security they would have if they were in their own home. The unit must contain a separate entrance, bathroom, kitchen, and sleeping area. It should also be built with the intention that the person will be living in the unit within 12 months following the completion of renovations.
Check with your tax expert before applying for the credit to ensure that you meet eligibility requirements and to ensure that the changes you want to make fall under the guidelines. For example, home appliances, housekeeping, and other services do not qualify under the multigenerational home renovation tax credit.
Statistics Canada Data
This is just one of many new incentives being proposed by various levels of government to address the growing number of seniors requiring additional care as they get older.
Many seniors do not qualify for assisted living or there is no space available. The home renovation tax credit makes it easier for families to care for loved ones. The latest Statistics Canada numbers indicated that nearly 2.4 million Canadians live in multigenerational households.
There are now nearly 442,000 multigenerational households in Canada as of 2021, indicating a 20 percent increase since 2011.
These figures are expected to continue to rise over the next few years as fewer spaces in long-term care and assisted living are available. It’s believed that more than half a million Canadian children are living in multigenerational households. This means that at least one parent or grandparent is living in the home. Rising housing costs, and fewer homes available, are also forcing families to rethink how they will take care of loved ones in the future.
Take Advantage of This Credit With Basement Renovations
There are several secondary suite options to choose from. The most popular is a basement renovation. This allows you to avoid the hassle of waiting for a new suite to be built in your home, and allows you to renovate your existing basement to meet your family’s current situation and requirements. There are many basement renovation ideas that let you convert your unused living space into a warm and comfortable secondary suite for your loved one.
Build a Secondary Suite in Your Basement
A secondary suite in your basement can allow you to transform your living space into a fully functional home for your family. The home renovation experts at Moose Basements can add the right finishes to make your basement a completely self-contained space.
This includes a:
- Living area
We also ensure that your new basement suite meets all building and fire codes, including having appropriate windows, doors, and other details to keep your loved ones safe.
Contact us today for a consultation on your secondary basement suite. Let Moose Basements make it easier to care for the ones who mean the most to you.