T1-2023 Multigenerational Home Renovation Tax Credit Schedule 12

Complete this schedule if you are eligible to claim the Multigenerational home renovation tax credit (MHRTC) on line 45355 of your return. For more information, go to canada.ca/mhrtc.

Attach a copy of this schedule to your paper return. Do not include your supporting documents, but keep them in case you are asked to provide them later.

Who can claim the Multigenerational home renovation tax credit (MHRTC)

You can claim this credit if you are an eligible individual who incurred certain renovation expenses (qualifying expenditures) to create a secondary unit in an eligible dwelling that allows a qualifying individual to live with a qualifying relation.

An eligible individual is either of the following:

See the the next page for definitions of the terms in bold above.

Notes:
You must be a resident of Canada throughout the tax year to claim this credit.
Only one renovation can be claimed for a qualifying individual in their lifetime.
When more than one eligible individual makes an MHRTC claim for the same qualifying renovation, the total of all amounts claimed for that renovation must not be more than $50,000. If the individuals cannot agree on what portion of the amounts each can claim, the Minister of National Revenue may decide the portions.
Expenses claimed for the medical expense tax credit or the home accessibility tax credit cannot be claimed for the MHRTC.

For more information including examples of who can claim this credit, go to canada.ca/mhrtc.

How much you can claim

An eligible individual can claim up to $50,000 in qualifying expenditures for a qualifying renovation ending in the tax year.
The MHRTC is 15% of whichever amount is less:

The maximum credit available for the MHRTC is $7,500.

Notes:
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 received, or are entitled to receive, including any related rebates, such as those for GST/HST.

 
2

Eligible dwelling

A housing unit in Canada that:

  • both the qualifying individual and the qualifying relation ordinarily reside in, or intend to ordinarily reside in, within 12 months of the end of the renovation period
  • is owned (or jointly owned) by the qualifying individual or a qualifying relation of that individual (or a trust if the qualifying individual or qualifying relation is a beneficiary of the trust) at any time during the renovation period tax year
The amount of land that can be considered part of the eligible dwelling is generally limited to half of a hectare (1.24 acres).

Qualifying expenditure

An expense that is:

  • a reasonable expense that was directly attributable to the qualifying renovation of an eligible dwelling
  • paid or incurred after December 31, 2022, and before the end of the renovation period by an eligible individual (or a trust that the eligible individual is a beneficiary)
For examples of qualifying expenditures that qualify and do not qualify, go to go to canada.ca/mhrtc

Qualifying individual

Someone who, before the end of the renovation period tax year, is one of the following:

  • 65 years of age or older
  • 18 years of age or older who is eligible for the disability tax credit

Qualifying relation

Someone who is one of the following:

  • 18 years of age or older before the end of the renovation period tax year
  • a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece or nephew of either the qualifying individual or their cohabiting spouse or common-law partner, at any time in the renovation period tax year

Qualifying renovation

A renovation or an alteration of, or addition to, the qualifying individual's eligible dwelling that:

  • allows the qualifying individual to reside in the dwelling with a qualifying relation by establishing a secondary unit within the dwelling
  • is of an enduring nature and integral to the eligible dwelling

Renovation period

A period of time that:

  • begins at the time that the first qualifying expenditure is made or incurred for a qualifying renovation (for example, when you apply for a building permit)
  • ends at the time of the completion of the qualifying renovation (for example, when the qualifying renovation passes the final inspection or proof of project completion is received)

Renovation period tax year

The tax year that includes the end of the renovation period of the qualifying renovation. For example, if the renovation period ends on May 3, 2024, the renovation period tax year is 2024 even if the renovation began in 2023.

Secondary unit

A self-contained housing unit that:

  • has a private entrance, kitchen, bathroom facilities and sleeping area
  • meets applicable local requirements to qualify as a secondary dwelling unit, if any
The secondary unit can be newly constructed or created from an existing living space.

 
3

Step 1: Calculating your qualifying expenditures

Complete this step to calculate the amount of MHRTC you can claim for the qualifying renovation.

If you paid qualifying expenditures for more than one qualifying renovation, complete this step for each qualifying renovation.

If you need more space, use an additional sheet of paper.

Software Note

  • To add a qualifying renovation, please click the Add renovation button below.
  • To delete a qualifying renovation, please tick the checkbox for the renovation and then click the Delete renovation button below.

                         
Renovation 1:
 
               
Date on sales Vendor or contractor Description Amount paid
slip or contract Name GST/HST No.
(if applicable)		 (including all
applicable taxes)
Total amount paid from all sales slips and contracts included in the table above   Total qualifying expenditures      1 
Any amount that can reasonably be considered to be reimbursed (including government assistance received or receivable) included in the amount on line 1 -  2 
Line 1 minus line 2 (maximum $50,000 per qualifying renovation) = readonly  3 
Maximum amount per qualifying renovation  4 
Amount of eligible expenses being claimed by other eligible individuals -  5 
Line 4 minus line 5 =  6 
Enter whichever is less:
amount from line 3 or line 6.		 Your qualifying expenditures for the qualifying renovation =  7 
 
 

Step 2: Calculating your MHRTC
                         
Add the amounts from line 7 for each qualifying renovation. Your total qualifying expenditures 45354 =  8 
Applicable rate x  9 
Line 8 multiplied by the percentage from line 9
Enter this amount on line 45355 of your return.		 Multigenerational home renovation tax credit
(maximum $7,500 per eligible individual)		 =  10