The homeowner must see! The five major tax credits in Canada can help you save thousands of Canadian dollars!
Owning a house in Canada is not cheap, but fortunately, tax credits and benefits can help homeowners earn some extra cash to maintain their homes. Due to the continuous rise in food and housing prices, Canadians are facing a cost of living crisis, which has become a major concern for most Canadians, especially homeowners.
Despite the Bank of Canada significantly lowering interest rates to 3.75% this month, experts say this may not necessarily effectively alleviate the debt burden on Canadians. Based on this, many homeowners have begun to consider renovating their existing properties to meet their constantly changing living needs.
The Canada Revenue Agency (CRA) shared some tax incentives that homeowners should be aware of in a recent press release. CRA mentioned, "We have learned that many families are looking for suitable housing options for elderly parents or family members with disabilities. You may be an elderly person who needs accessibility improvements to improve mobility, or you may want to build a multi generational home environment. In any case, the cost of home renovation is a factor that needs to be considered.
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According to the advice of the Canada Revenue Agency and other financial institutions, if you own a house, you should take advantage of the following tax credits and benefits.
Multi generational Home Decoration Tax Credit (MHRTC)
MHRTC can provide valuable refundable credit lines for eligible renovation expenses to build a self-sufficient second unit for someone and their family to live in.
For example, if you want to build a separate basement unit for your parents at home, this tax credit can help you.
You can declare each eligible renovation expense, up to a maximum of CAD 50000. The tax credit is 15% of the eligible expenses, with a maximum credit amount of CAD 7500 per declaration.
Family Accessibility Tax Credit (HATC)
HATC's non refundable tax credit is applicable to eligible housing decoration or renovation expenses, with an annual expense limit of 20000 yuan.
Tax reduction due to relocation for work
If you found a new job last year and had to move at least 40 kilometers away from your new workplace, you can deduct all moving expenses.
Yes, this means you can recover the costs of flights, moving, selling real estate, terminating leases or mortgages, and temporary housing - these costs can add up to a lot.
Self employed occupation or working from home tax credit
If you have your own business and work from home, you can declare home office expenses. You can also declare car travel expenses - just make sure to keep this information on file.
If you are not self-employed and work from home, you can still claim these fees.
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https://dailyhive.com/toronto/5-tax-incentives-canadian-homeowners-2024