Expenses you can claim

Qualifying expenses may be claimed for the MHRTC.

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Expenses that qualify

The renovation expenses that you can claim must be qualifying expenditures. A qualifying expenditure is all of the following:

  • A reasonable expense that is directly attributable to the qualifying renovation of an eligible dwelling
  • Made or incurred after December 31, 2022, and before the end of the renovation period
  • Made or incurred by an eligible individual (or a trust that the eligible individual is a beneficiary of)

    See Who can claim.

A qualifying expenditure may include:

  • Goods acquired or services received, including work performed by professionals (such as electricians, plumbers, carpenters or architects)

    If you're planning to hire a contractor to do construction, renovation or repair work on your home, see Protect Yourself – Get it in writing!

    If you perform the work yourself

    If you do the renovation work yourself, qualifying expenditures include expenses for:

    • building materials
    • fixtures
    • equipment rentals
    • building plans
    • permits

    However, qualifying expenditures do not include the value of your labour or tools.

    If a family member performs the work or helps you Expenses are not eligible if the goods or services are provided by a person related to the qualifying individual or the eligible individual, unless that person is registered for GST/HST. If your family member is registered for GST/HST and all other conditions are met, the expenses may be eligible for the credit.

     

  • Outlays or expenses for permits required
  • Rental of equipment used in the course of the qualifying renovation
If expenses were incurred by a trust

Qualifying expenditures can also include an outlay or expense made or incurred by a trust that an eligible individual is a beneficiary of if the expense is reasonably attributable to the eligible dwelling.

For this rule to apply, the outlay or expense must be a qualifying expenditure of the eligible individual, if it had been made or incurred by that individual, and the trust must notify that individual of the amount of the outlay or expense attributable to the eligible dwelling.

 

Expenses that do not qualify

Expenses that do not qualify include:

  • Annual, recurring or routine repair or maintenance
  • Household appliances
  • Electronic home-entertainment devices
  • Housekeeping, security monitoring, gardening, outdoor maintenance or similar services
  • Financing costs for the qualifying renovation
  • Goods or services provided by a person not dealing at arm’s length with the individual unless that person is registered for GST/HST under the Excise Tax Act
  • Expenses that can reasonably be considered to have been reimbursed
  • Expenses not supported by receipts
  • Expenses that have already been claimed under the medical expense tax credit or home accessibility tax credit, or both
 

Maximum amount of expenses you can claim

An eligible individual can claim up to $50,000 in qualifying costs for one qualifying renovation that was completed in the tax year. When renovation costs have been shared, more than one eligible individual can each make a claim for the same renovation up to a combined total of $50,000.

The MHRTC is 15% of whichever amount is less:

$50,000: Option 1 of 2

Even if the renovation costs were more than $50,000, the maximum you can claim is $50,000.

Example: The renovation costs $50,000 or more

Jackie is eligible to claim the MHRTC on her 2023 return. Her qualifying expenditures are $70,000.

Even though Jackie paid $70,000 for expenses, only the maximum of $50,000 can be claimed:

  • $50,000 in qualifying expenses
  • xtimes15%
  • = equals $7,500 refundable tax credit

When Jackie calculated her taxes before including the MHRTC, she had a balance owing of $2,000. With the maximum MHRTC applied, she will receive a refund of $5,500.

The amount of qualifying expenditures incurred by the eligible individual: Option 2 of 2

You can claim the total of your qualifying expenditures up to $50,000.

Example: The renovation costs less than $50,000

James is eligible to claim the MHRTC on his 2023 return. His qualifying expenditures are $30,000:

  • $30,000 in qualifying expenses
  • xtimes15%
  • = equals $4,500 refundable tax credit

When James calculated his taxes before including the MHRTC, he had a balance owing of $2,000. With the maximum MHRTC applied, he will receive a refund of $2,500.

Since this tax credit is refundable, you will receive a refund if the credit you claim is more than the taxes you owe.

Claims for more than one qualifying renovation in a year

If you complete 2 qualifying renovations for 2 separate qualifying individuals, you can calculate and claim the MHRTC for each one.

Example: Completing two qualifying renovations in the same year

Dez is related to 3 qualifying individuals: her brother, her mother and her father.

In April 2023, she renovated her house to create a self-contained basement apartment so that her brother could move in with her.

This renovation was completed in October 2023. Her qualifying expenses for this renovation were $15,000.

In July 2023, Dez decided to build a second separate apartment over the garage for her elderly parents to move into.

This renovation was completed in December 2023. Her qualifying expenses for this renovation were $63,000.

As long as both renovations meet the eligibility conditions, Dez may claim the expenses for both qualifying renovations on her 2023 tax return.

Although Dez spent $78,000 on the renovations to create two secondary units, she is limited to the maximum per qualifying renovation and cannot combine her total qualifying expenditures.

The claims must be calculated separately to determine the maximum amount for each renovation:

Renovation 1

  • $15,000 in qualifying expenses
  • x times 15%
  • = equals $2,250 refundable tax credit

Renovation 2

  • $50,000 in qualifying expenses (maximum)
  • xtimes15%
  • = equals $7,500 refundable tax credit

Total MHRTC for 2023: $9,750

 

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