The Canadian government has decided to implement the $7,500 Canada Tax Credit in October 2024 under the Multigenerational Home Renovation Tax Credit. This program started to help individuals, families, senior citizens, and disabled people who are living with multiple generations in a single home.
The MHRTC provides financial relief to multigenerational families, willing to create secondary accommodation within their primary home for renovation. This article describes the $7500 Canada Tax Credit Approved in October in detail, eligibility for this program, what are payment dates, how to apply for this benefit, and everything you need to know about this program.
$7500 Canada Tax Credit Approved in October 2024
The $7500 Canada Tax Credit in October 2024 is the program that provides financial benefits to house owners to reduce their stress of living with seniors and disabled members. This program is focused on supporting these house owners financially who are facing difficulties with living with aged or disabled family members.
This program promotes multigenerational family accommodation helping them with the house renovation costs. If you are eligible for this benefit program you can also receive these tax returns. You are suggested to consult with your tax professionals to avoid the deductions.
Canada $430 One-Time Rent Relief
Overview of the $7,500 Multigenerational Home Renovation Tax Credit
The Multigenerational Home Renovation Tax Credit was initiated by the federal government of Canada in 2024. This is a kind of financial assistance that is provided to house owners who want to create secondary accommodation for their family members who are senior or disabled.
This program provides funds for the renovation of the same primary accommodation so that those people can get separate and personal living space. This program is aimed at encouraging a multigenerational living lifestyle so that seniors or disabled people can live separately but with family. This benefit ensures a reduced burden on individuals who require additional care.
What Are the Benefits of the $7500 Canada Tax Credit?
- It saves money: By building the personal living space for aged or disabled people families can save the money that they invest in old age homes or disabled people’s nursing homes.
- It increases the house’s value: When you renovate the old house and create a secondary space it increases the market value of your house.
- Encourages Multigenerational living: This culture is more suitable than individual conjugal families ensuring more family care, love, and safety.
Eligibility Criteria For $7500 MHRTC
You can get the $7,500 Tax refund if you don’t have taxes and you are eligible for MHRTC. To be qualified for this tax credit you must meet these eligibility criteria:
| Eligibility Factor | Criteria |
| Ownership of the House | To be eligible for this benefit you must have ownership of the house and relation with the applicant. |
| Primary Accommodation | The home you are applying for must be the primary living space of the senior or disabled person For whom you are making secondary space. |
| Unit of Primary Home | Renovated secondary space must be the part of primary home, it should not be separated from the primary one. |
| Eligible Individuals | The person for whom you are making a secondary home must be:Aged 65 or overOr 18 or older & must be eligible for Disability Tax Credit. |
| Relation with House owner | The eligible individual must be a relative of the house owner. Relation must be Father/MotherGrandfather/GrandmotherChildren/ grandchildrenBrother/Sister/Aunt/Uncle/niece/Nephew/Spouse/Common-law partner/Legal Relative |
Eligible Expenses Under $7500 Tax Credit
- The tax credit is determined as 15% of the eligible costs of renovation for example if you spend $50,000 on renovation, only $7500 will be refunded.
- Renovation costs include construction materials and labor costs.
- It includes expenses on permission, design, and necessary inspections.
- This credit also covers the cost of ramps, handrails, or widening of the doors.
What is not covered? Money spent on painting, decoration, furnishing expenses, and home appliances is not covered in this tax refund.
Payment Dates and Timing
The $7500 Canada Tax Credit is credited in two installments in the year. The first was distributed on July 5, 2024, and the second one is expected on October 5, 2024.
This is important to remember that funds are credited to your bank account directly by the Canada Revenue Department.
How to Apply For Home Renovation $7500 Refunds?
There is no need to apply for a $7500 tax refund if you file taxes online, this will be automatically calculated by the program. Whereas, if you file taxes offline you will need to apply through offline form and submit it to the CRA.
Step 1: Get the Renovation Done First: Ensure that renovation work is completed and the secondary living space is a part of the primary home.
Step 2: Keep All Bills Safe: Keep all the required documents including bills, receipts, and expense records.
Step 3: File Your Tax: Complete your Scedule-12 while filing for the T1 and tax credit for $7500.
Step 4: Wait for approval: It generally takes 10-12 weeks after the application process is initiated.
Conclusion: The MHRTC is a great benefit that provides financial help for making an extra living space for senior citizens or disabled people in their existing primary house. While this secondary space must be a part of the primary living space.
This program encourages a multigenerational living culture. A maximum Claim of $50,000 is allowed in the MHR tax credit this means only 15% (which is a maximum of $7500) are refundable. To get this benefit you must be eligible for this program as mentioned above. You can visit canada.ca for more information.
Riya Claire is the Editor-in-Chief of the East Hampton Chamber Portal. She holds a degree in Mass Communication, an MBA in Finance, and a diploma in HR, making her a versatile professional for an online portal