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Multigenerational Home Renovation Credit Vs. Home Accessibility Tax Credit: Can You Claim Both For the Same Expense?

The Multigenerational Home Renovation Tax Credit (MGHRTC) and the Home Accessibility Tax Credit (HATC) are distinct tax credits under Canadian tax law, each with its own set of eligibility criteria and rules. The MGHRTC is a refundable tax credit designed to support eligible individuals in claiming certain qualifying expenditures for qualifying renovations made to an eligible dwelling of a qualifying individual. The HATC, on the other hand, is a non-refundable tax credit that allows eligible individuals to claim certain qualifying expenditures for eligible dwelling improvements that enhance access to, or mobility within, the dwelling for a qualifying individual.

The MGHRTC allows for up to $50,000 in qualifying expenditures for a qualifying renovation for the tax year in which the renovation period ends, with the credit being available for qualifying expenditures paid after December 31, 2022. The HATC permits up to $20,000 in qualifying expenditures to be claimed in a given tax year, resulting in a tax credit of up to $3,000 for that year, also for qualifying expenditures paid after December 31, 2022.

While both tax credits aim to facilitate modifications to dwellings to accommodate the needs of qualifying individuals, they are designed to address different circumstances. The MGHRTC focuses on renovations that enable qualifying individuals and their qualifying relations to reside together, potentially through the creation of a secondary unit within the dwelling. The HATC is aimed at improvements that increase accessibility or mobility for qualifying individuals within their homes.

Despite the potential for certain expenditures to meet the criteria of both credits, it is explicitly stated that the same expense cannot be claimed for both the MGHRTC and the HATC. Each credit has specific requirements and limitations that must be adhered to, and while some expenditures may qualify for both credits in theory, they cannot be simultaneously claimed under both credits. This ensures that each tax credit is applied to its intended purpose without overlap or double-dipping for the same expense.

Therefore, the same expense cannot qualify for both the Multigenerational Home Renovation Tax Credit (MGHRTC) and the Home Accessibility Tax Credit (HATC) under Canadian tax law.

This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action. ©2024 Shajani CPA.

Shajani CPA is a CPA Calgary, Edmonton and Red Deer firm and provides Accountant, Bookkeeping, Tax Advice and Tax Planning service.

Nizam Shajani, Partner, LLM, CPA, CA, TEP, MBA

I enjoy formulating plans that help my clients meet their objectives. It's this sense of pride in service that facilitates client success which forms the culture of Shajani CPA.

Shajani Professional Accountants has offices in Calgary, Edmonton and Red Deer, Alberta. We’re here to support you in all of your personal and business tax and other accounting needs.