Since the introduction of short-term rental services, regulations have been established by both the provincial and federal government to provide rules and guidelines for people wanting to participate on platforms like Airbnb.
One of these regulations requires you to declare your rental income to the Canadian Revenue Agency (CRA). The following will guide you on how to do so in order to remain compliant with the federal government.
Because of the demand for proper regulation, Airbnb works closely with the CRA and the H&R Block to help Canadians declare their income and to increase compliance in Canada for short-term rentals. There are two types of income to declare:
If you have any additional questions that are still left unanswered, you can find more information by clicking here, or by visiting a tax professional.
There are two types of expenses to consider when renting out on Airbnb and that can be tax deductible:
To learn more about how to deduct these from your taxes, click here.
Airbnb and other platforms alike are still fairly new, which is why the Canadian government's work on regulating and taxing such platforms is still ongoing, leaving some of the regulation and further taxation policies in the hands of provincial government's. You can read more on tax laws in Canada here. Make sure to inform yourself on the tax policies and other regulations in your area before embarking on a journey with Luckey!
We recommend that you do your own research as this article isn’t comprehensive, and doesn’t constitute legal or tax advice. Also, as we don’t update this article in real time, please check each source and make sure that the information provided hasn’t recently changed.