By: Kevin-Barry Henry, #1 Bestselling Author
For those of you that wish to age in place with the help of your adult children, there is good news as of January 1st, 2023.
The federal government is introducing a new tax credit to help Canadians care for adult relatives in their own homes.
The multi-generational home renovation tax credit went into effect on January 1 for expenses related to building a secondary suite for a senior or an adult with a disability in the family.
You may recall that when we reviewed the Federal Budget Initiatives in an article here last April, the projections at that time were a little fuzzy and light on details. Well, the official details and numbers are out now.
The credit will provide a 15% tax refund on up to $50,000 in expenses, up to a maximum of $7,500 total refund ($50,000 X 15% = $7,500)
A related adult over the age of 65 or living with a disability, such as a grandparent, parent, child, grandchild, sibling, aunt, uncle, niece or nephew, must occupy the secondary suite.
The secondary suite must be a self-contained living space with its own entrance, bathroom, kitchen, and sleeping area.
Furthermore, the home being renovated must be occupied or reasonably expected to be occupied within 12 months of the completion of the renovations.
Some expenses, such as home appliance purchases and costs for housekeeping or other services, are not eligible for the credit.
The credit was one of several new housing affordability measures promised by the government and included in the 2022 budget released in April.
If you would like to discuss the possibilities available to you for multi-generational home renovation in Canada, feel free to reach out to me for a free 15-minute chat here.
As always, I look forward to hearing from you.
THIS ARTICLE IS PROVIDED AS A GENERAL SOURCE OF INFORMATION ONLY AND SHOULD NOT BE CONSIDERED TO BE PERSONAL INVESTMENT OR LEGAL ADVICE. READERS SHOULD CONSULT WITH THEIR FINANCIAL OR LEGAL ADVISOR TO ENSURE IT IS SUITABLE FOR THEIR CIRCUMSTANCES.