How to claim
The person who makes the claim is the eligible individual who incurred the renovation expenses.
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When to claim
To claim the MHRTC, you must claim the qualifying renovation in the tax year when the renovation period ended, even if the renovation took more than one year.
The renovation period:
- begins when the first qualifying expenditure is made or incurred for a qualifying renovation (for example, when you apply for a building permit)
- ends when the qualifying renovation is completed (for example, when the qualifying renovation passes the final inspection or proof of project completion is received)
Example: Renovation ends in 2024
Kwame completed a qualifying renovation so that his mother-in-law can live in a separate unit in his house, and intends to claim the MHRTC on his tax return. His first expense for this renovation was incurred in April 2023. The renovation passed the final inspection and was completed in July 2024.
Regardless of when the renovation started, the MHRTC must be claimed in the year that the renovation was completed. If Kwame meets all of the eligibility conditions, he can claim the MHRTC on his 2024 tax return.
Splitting the credit between eligible individuals
When two or more individuals share the costs for the same qualifying renovation, the credit may be split between them as long as all of the following conditions are met:
- Each person claiming the MHRTC is an eligible individual
See Who can claim.
- The total amount claimed between all eligible individuals is not more than the maximum
- The eligible individuals can only claim the qualifying expenditures that they incurred
- No MHRTC was previously claimed for the qualifying individual (senior 65 years of age or older, or adult who is eligible for the disability tax credit)
Example: Splitting the maximum credit between two eligible individuals
Rey and Jax shared the cost of a qualifying renovation in 2023. Rey and Jax are eligible individuals who can claim their portion of the qualifying expenses on their returns.
The total amount of qualifying expenses Rey and Jax incurred for the renovation was $62,000.
Rey’s qualifying expenses were $29,000
Jax’s qualifying expenses were $33,000
Since the maximum amount of expenses that can be claimed for the MHRTC is $50,000, Rey and Jax must decide how they will split the credit. Each of them could claim up to the maximum amount of qualifying expenses that they incurred, as long as the total for the claim is not more than $50,000.
Option 1 - Rey and Jax to decide to claim the credit according to the portion of expenses each of them incurred:
- Rey’s portion of maximum claim: $29,000 ÷ $62,000 = 47%
- Amount of expenses Rey would claim: $50,000 × 47% = $23,500
- Jax’s portion of maximum claim: $33,000 ÷ $62,000 = 53%
- Amount of expenses Jax would claim: $50,000 × 53% = $26,500
Option 2 - Maximize the claim that one person can make while the other person claims the remaining allowable amount (up to either the maximum total MHRTC or the amount of qualifying expenses that each incurred)
Splitting the credit so that Rey can claim as much as possible:
- Amount of expenses Rey would claim: $29,000 (limited to the expenses that Rey incurred)
- Amount of expenses Jax would claim: $50,000 (maximum claim) – $29,000 (Rey’s portion) = $21,000
Splitting the credit so that Jax can claim as much as possible:
- Amount of expenses Rey would claim: $50,000 (maximum claim) – $33,000 (Jax’s portion) = $17,000
- Amount of expenses Jax would claim: $33,000 (limited to the expenses Jax incurred)
Where to enter the claim on your return
For 2023 and later tax years, the MHRTC is claimed on line 45355 of your income tax and benefit return.
Use Schedule 12, Multigenerational Home Renovation Tax Credit, to report your expenses related to the MHRTC and calculate the total credit you can claim.
You may claim more than one qualifying renovation in the same year.
Learn more: Expenses you can claim
Supporting documents
Your supporting documents must clearly identify the type and number of goods bought or services provided, such as:
- Information that clearly identifies the vendor/contractor, their business address and GST/HST registration number, if any
- A description of the goods and the date they were bought
- The date when the goods were delivered (keep your delivery slip as proof) or when the work or services were performed, or both
- A description of the work done, including the address
- The amount of the invoice
- Proof of payment (receipts or invoices must show payment in full or be accompanied by other proof of payment, such as a credit card slip or cancelled cheque)
To check whether someone is registered for GST/HST, see GST/HST Registry.
Learn more: How long should you keep your income tax records?
Impact on other credits and benefits
Expenses that may be included in an MHRTC claim must be reduced by any expenses that can reasonably be considered to have been reimbursed. This includes any form of assistance that you receive, or are entitled to receive, and any related rebates, such as those for GST/HST.
You cannot claim the same expense for more than one credit. This means that you cannot claim expenses that you included in your MHRTC claim in your claim for the medical expense tax credit or the home accessibility tax credit.
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