The federal government is now offering a tax credit to those who wish to add a secondary suite to their homes for the purposes of allowing an immediate or extended family member to live with them.
The multi-generational home renovation tax credit took effect Jan. 1.
Families are able to claim a one-time 15% tax credit up to $50,000 in renovation and construction costs.
This will provide up to $7,500 in support.
To qualify, the secondary suite must be for a relative over the age of 65 or living with a disability, including a parent, child, grandparent, grandchild, sibling, aunt, uncle, niece or nephew.
The home may be owned by the senior or adult with a disability, a family member or a trust.
The qualifying person or their cohabiting spouse or common law partner can claim the credit. So can a qualifying relation.
Renovations must be made to the owner’s current primary home and not a separate residence. The secondary suite must be a self-contained unit that includes a separate entrance, bathroom, kitchen and sleeping area. The home being renovated must be inhabited within 12 months of the renovation ending.
Some expenses, such as the purchase of home appliances or a security system, do not qualify for the credit.