A taxpayer claimed the credit for renovations to the individual’s home that met all the criteria, including that of a separate unit for the taxpayer’s parents. Would the credit still be available if the individual sold the unit to them for its FMV a year later? CRA responded:
[T]he eligible individual, if a qualifying relation of a qualifying individual, must ordinarily reside, or intend to reside, in the eligible dwelling within 12 months after the end of the renovation period in respect of a qualifying renovation or be the owner of the eligible dwelling. In the example submitted, the taxpayer (a qualifying relation) was the owner of the eligible dwelling in the year in which the taxpayer claimed the Multigenerational Home Renovation Tax Credit. If all the other conditions of section 122.92 were satisfied, the sale of the unit to his parents would not disqualify the taxpayer from eligibility for the credit.