Airbnb Canada Income Tax Questions

[Mike-And-Lorna0]

I own a ski resort condo. I have decided to rent it using airbnb. I am making it so it 100% avail 365 days a year. Its a 4 season resort. I am going to go see an accountant but was wondering if anyone here may have some insight.

Question 1 - Say it only gets rented 1 or 2 weeks a month, since it is avail to rent every day of the year can I still claim 100% of my expenses? I have read conflicting things on this.

Question 2 - My wife is self employed and is 50% owner. Can I claim the all the earnings and expense on my Tax return, or does she have to claim 1/2. Hoping its me as I am retired and in a lower tax bracket.

Question 3 - I dont expect I will have to pay GST as I wont make that threshold, but if my wife has to claim 1/2 will she have to pay gst since she is already a GST registrant for who own business.

[Sarah977]

@Mike-And-Lorna0  These are questions it's best to ask a tax professional.

[Olga832]

@Mike-And-Lorna0 Did you find the answer on Question #1? Wondering too

[Paulette23]

@Mike-And-Lorna0 My understanding is that you can only claim expenses relating to the actual nights booked. My research pointed to that and I've prepare my past tax returns accordingly. 

I'd appreciate knowing any professional insights you may obtain. Thanks!

[Shannon692]

I am newish to all this and feel like I have no idea how to do the taxes/ income/ deductions.  Is there anyone who can give me advice or suggest accountants etc. I live in Nova Scotia 

[Mary478]

I have been a host for about 3 years with Airbnb. I have always submitted any money received from my rental as well as any expenses paid out during the year. I have a bookkeeper as the rules are so confusing. However now I am receiving notifications from Airbnb saying that I should add my tax information. My property is in Canada. Wondering with the new  tax law that is popping up on my feed (related to US properties) if anyone has put in their Canadian tax information on their listing? Or if this is needed since I submit to CRA on my own. I have reached out to Airbnb but their answers are not clear. I will continue to reach out for support but thought perhaps someone else is as confused as I am. My bookkeeper has asked me to reach out to CRA but I am afraid that I will just draw attention to my account. My property is in Ontario. 

[Shannon692]

The new request is what I am finding confusing

[Paul7222]

Hi Mary, 

Here is some info that I can share with you ... of course, please keep in mind that I am not a professional and any details are what I have sourced on my own and you should verify.

1.  In Canada, GST is charged on income of $30,000 (per the previous 4 quarters) or more.  You need to register for a GST number if this applies to you, and,

2. Per the CRA, Starting July 01, 2021 (with a deferral until July 01, 2022) any Accommodation platform means a digital platform through which a person facilitates the making of supplies of short-term accommodation situated in Canada by another person that is not registered under the normal GST/HST, will need to charge the GST.  (unless you supply your own GST number and remit yourself)

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/digital-ec...

I have approached both the CRA and AirBnB, as in the CRA new digital economy policy there is no clarification/exemption on long-term stays.  Typically, for residential rentals in Canada, if it is 30 days or longer, GST is not required.

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/19-2-2/residential-...

 "A rental of a residential complex or a residential unit in a residential complex is exempt if the complex or unit is to be used by an individual as a place of residence or lodging and if the rental period is a period of continuous occupancy or right of occupancy of one month or more to the same individual."

For some hosts, we do nothing but long-term 30 day+ stays and under the CRA this is considered as a long-term rental and is not subject to GST.  Yet, under the new Digital Economy GST rules, it appears that AirBnb will charge GST on all bookings no matter their duration.  There is obviously an oversight here on the CRAs part and people booking long-term stays with AirBnb (or any other platform) will end up paying the GST 5% on top of their booking; which contradicts other CRA rules.

I hope someone can help resolve this issue.

[Maggie255]

Hi! @Mary478, @Shannon692, @Paul7222 

I've been renting my suite for the past 19 years (some long-term stays included). This is a home based business and my rental income is below $30,000 so have never registered for a GST number. These notifications regarding GST are confusing. Do I need to do anything or does this just mean that Airbnb will add GST using their own GST number and I can just keep doing my normal business? I do not need to use airbnb platform if this is going to mean that I need to start charging GST. I can go back to doing it all through my own website and emailing my guests directly. I am signed up for the Alberta Tourism Levy tax. 

Thank you for any input.

[Mary478]

Hi so I have messaged Airbnb several times and seem to get the same message each time that doesn’t answer my question. My understanding is that if you make more than 30,000 you have to charge HST. Starting July all Airbnb hosts have to either submit a GST or Airbnb will charge GST on nightly fees. However if you give them your GST number then you are responsible for charging the GST. If you don’t give them a GST number then they will deduct it from your nightly rental and submit it to CRA. Not sure how often this is done and how that affects your fees when claiming it on income tax. That I have asked but never get a response. Perhaps it’s easier to let them deal with it? I assume if that’s the case then once you submit your income tax return it would be adjusted on their end?

[Glenda142]

Hi, I’m close by you. I don’t make $30000 g either but being forced to get a tax number and up my prices, and hire a bookkeeper as it’s more complicated. 
maybe it’s easier to go back to JHAA, BBCanada and own websites. 
I can’t get info from Airbnb.Did you decide what to do? Thnx.

[Della103]

Property for timeshare is one week rental in Whistler.  Airbnb collects and " remits taxes on my behalf". I have called Airbnb multiple times as I need to know, will I get a tax slip then for my income taxes and report same? Or what will this look like. This is my first time doing this. 

Any information would be greatly appreciated. 

[Karen3078]

Also from Canada - We are considered a small supplier as we do not meet the $30,000 rental income threshold where GST becomes mandatory. I do not see an option on airbnb’s tax info request form to declare exempt status. Our accountant says use S.I.N. I am concerned adding ANY tax info will trigger GST charges to our guests. Any ideas? Thank you. Karen

[Zinnet0]

I am a Canadian with BC residency but I Airbnb our place in Mexico. AIRBNB deducts 20% taxes on all my bookings for Mexico.  My rental income gets deposited in Canadian bank accounts.  I want to declare my income and my accountant is asking for a tax form from AIRBNB.  Where do I get this form?  Can anyone help me with this matter.

[John6556]

@Mike-And-Lorna0  Airbnb Customer Service is completely useless.  Don't waste your time. 

Yes you deduct all your expenses less any personal use. See the CRA rental income form.  Joint ownership has to be declared 50/50 on the form and both of you have to include the form in your tax returns and declare the split earnings. 

Everything is 50/50. Hope that answers your questions.  You may be able to submit GST on under one number but I would be careful with that.  It won't jive with your split rental income and expense form. I would call CRA and ask them.