An individual is constructing a family home with a semi-attached garden suite in which the individual’s parents will live. Is the multigenerational home renovation tax credit (MGHRTC) available if both dwellings are built concurrently (rather than the garden suite being required to be built and occupied second)? In responding affirmatively, CRA stated:
[S]ection 122.92 … does not require that an eligible dwelling be built prior to, or concurrently with, a secondary unit in order for qualifying expenditures to qualify for the MGHRTC. Section 122.92 also does not require that an eligible individual reside in the eligible dwelling prior to adding a secondary unit. However, there must be a reasonable expectation that both the qualifying individual and qualifying relation of that individual will ordinarily inhabit the housing unit (including the secondary unit) within 12 months after the end of the renovation period. In your case, this expectation would apply to you (as a qualifying relation) and your elderly parent (the qualifying individual).