If you have seniors or adults with disabilities living in your home, you will appreciate the new refundable tax credit.
The new refundable tax credit would provide financial support when constructing a secondary suite for an eligible person to live with a qualifying relative. This 15% tax credit would be available on up to $50,000 of eligible expenditures. This credit would apply to 2023 and subsequent taxation years.
It would cover the cost of building secondary suites or renovating an existing home. The unit must be self-contained with a private entrance, kitchen, bathroom and sleeping area.
Here are some examples of expenditures that would not qualify for the credit:
- annual, recurring or routine repairs or maintenance;
- household appliances or electronic home – entertainment devices;
- housekeeping, security monitoring, gardening, or outdoor maintenance;
- financing costs in respect of the qualifying renovation;
- goods or services provided by a person not dealing at arm’s length unless the person is registered for GST; and
- an outlay or expense to the extent that it can reasonably be considered reimbursed.
The new renovation tax credit puts more money into your pocket to make your home more comfortable for your family members in need.
