Adding a self-contained unit to your home so a relative can move in is expensive. The multigenerational home renovation tax credit (MHRTC) is a refundable credit for that renovation, claimed on line 45355.
The renovation has to create a self-contained secondary unit — one with a private entrance, a kitchen, a bathroom, and a sleeping area. The unit must let a senior, or an adult who is eligible for the disability tax credit, live with a qualifying relation.
When you claim it
You claim in the tax year the renovation period ended, meaning the year the renovation was completed — when it passed its final inspection, for example — regardless of when the work started.
Qualifying expenditures must be incurred after December 31, 2023 and before the end of the renovation period. The credit is claimed on line 45355 for the 2024 and later tax years.
Only one MHRTC claim is allowed for a qualifying individual during their lifetime. If you complete qualifying renovations for two separate qualifying individuals in the same year, each of those can be claimed.
What your receipts and invoices must show
Expenses that are not supported by receipts do not qualify, and the documents have to clearly identify the type and number of goods bought or services provided. Each receipt or invoice should carry:
- information that clearly identifies the vendor or contractor, their business address, and their GST/HST registration number, if they have one
- a description of the goods and the date they were bought
- the date the goods were delivered — keep the delivery slip as proof — and when the work or services were performed
- a description of the work done, including the address where it was done
- the amount of the invoice
- proof of payment: the receipt or invoice must show payment in full, or be accompanied by other proof of payment such as a credit card slip or a cancelled cheque
If a family member did the work or supplied the goods — anyone you deal with at non-arm's length — they must be registered for GST/HST, and you can confirm that in the GST/HST Registry. Without that registration the expense is not eligible.
If you do the work yourself
You can claim building materials, fixtures, equipment rentals, building plans, and permits. You cannot claim the value of your own labour or your own tools; those cannot be claimed at all.
What reduces the claim
Your expenses must be reduced by any reimbursement or assistance you received or are entitled to receive, including any related GST/HST rebates.
The same expense cannot also be claimed under the medical expense tax credit or the home accessibility tax credit. It goes in one place, not two.
If more than one person shares the cost of the renovation, each eligible individual claims only the qualifying expenditures they incurred, and each keeps their own receipts showing those expenses.
What to keep
Keep every receipt and invoice for the renovation, the delivery slips, the building plans and permits, and your proof of payment. Keep them by the person who paid, if the cost was shared. Dossier tags a renovation invoice with the property address so the claim stays tied to the unit it paid for.
The expenses are reported on Schedule 12, Multigenerational Home Renovation Tax Credit, which calculates the credit that goes on line 45355. Do not send the receipts with your return; keep them in case the CRA asks to see them later.
Official CRA sources
- Line 45355 – Multigenerational home renovation tax credit (MHRTC)
- MHRTC – How to claim (supporting documents)
- MHRTC – Expenses you can claim
- MHRTC – Who can claim
- Schedule 12, Multigenerational Home Renovation Tax Credit
Source: Canada Revenue Agency (canada.ca). Not tax advice.