5 tax incentives Canadian homeowners should take advantage of
Owning a home in Canada isn’t cheap, but luckily, there are tax credits and benefits that can help you get some extra cash to maintain your dream home.
The country is facing a cost of living crisis due to high food prices and unaffordable housing, to name just a few reasons.
Costs are at the forefront of most Canadians’ minds right now, especially homeowners.
While the Bank of Canada made a massive interest rate cut this month to 3.75%, experts say it likely won’t dent the trillions of dollars of debt Canadians are drowning in.
So, homeowners might be wondering how they can renovate existing properties to meet evolving needs.
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The Canada Revenue Agency (CRA) shared some great tax incentives Canadian homeowners should know about.
“We know people are looking for housing options for aging parents or for a family member with a disability. You might be a senior who needs to make some modifications to your home to enhance your mobility,” reads a release.
“Or are you curious about multigenerational housing where more than one generation live under the same roof? Whatever the case, the cost of making modifications to your home is likely a factor.”
Here are six tax credits and benefits you should take advantage of if you own a home, according to the CRA and other financial institutions.
Multigenerational Home Renovation Tax Credit (MHRTC)
The MHRTC could provide a valuable refundable credit for eligible expenses related to qualifying renovations to create a self-contained secondary unit for someone to reside with their family.
For example, if you want to build a self-contained basement unit for your parents to live in your home, this tax credit could help you.
You could claim up to $50,000 in expenditures for each qualifying renovation that is completed. The tax credit is 15% of your costs, up to a maximum of $7,500, for each eligible claim.
Home Accessibility Tax Credit (HATC)
The HATC non-refundable tax credit is for eligible home renovation or alteration expenses, with an annual expense limit of $20,000.
Tax deductions from moving for work
If you got a new job last year and had to move at least 40 km closer to your new workplace, you can deduct all your moving costs.
Yes, that means you can claim the costs of flights, movers, selling real estate, getting out of a lease or mortgage, and temporary housing — which can add up to a lot.
Self-employment or work-from-home tax credits
If you have your own business and you work from home, you can claim business-use-of-home expenses. You can also claim car travel expenses — just make sure you keep this info on record.
If you’re not self-employed but you work from home for your job, you can still claim those expenses.