Recommendations for Accountants

[N0]

Hey everyone, I am a new host and I am trying to figure out how to do the taxes for this year. Until now I always used online tax software and it was all very straightforward. However, with the airbnb rental I am pretty sure my taxes will get complicated very soon. Any recommendations are appreciated!

[Lizzie]

Hello, 

Calling other hosts on the forum - can you provide any help on this? Perhaps you completed your tax return last year and have a few tips you can share. 🙂

[Emil0]

Consult a local accountant. Your tax return characteristics are unique to your situation and may be different than other hosts. Following incorrect tax advice can be a costly mistake.

[Danny0]

The accountant or tax preparer you choose does not necessarily have to be local to you. Because this is th eage of the internet, and you are extremely organized you can either fax or email your info to a knowledgeable account who can then prepare your tax return and efile it and email you a copy for your records.

[Lucille-and-Alan0]

What part of the city are you located in?

[Yohan-and-Sarah0]

Consider meeting with a local accountant for the first year and learning how to set up a T2125 for your business. If you already do your own taxes online, this isn't a major learning curve. That said, you'll need to pay attention to items like asset depreciation and personal use exemptions on your home. Over a year or two, my guess is you'll know whether you can do it by yourself or will need continued support.

Good luck!

[Dana8]

So you are saying that Airbnb income is considered business income not rental income?

[Yohan-and-Sarah0]

It would depend on  the level of service you offer. There are pros and cons for each, but if you plan to write-off a portion of expenses for items such as breakfast and other items that serve your guest's needs (consider supplies, linens etc.), that would probably require a business set up as opposed to a rental. Again, consult an accountant for your specific case (i.e. I'm not a tax accountant)

[Danny0]

You can either report your AirBnb income as RENTAL INCOME (T776) or BUSINESS INCOME(T2125. The rental income choice limits what deductions you can take for operating costs.INCOME(T2125). If you choose BUSINESS INCOME you have a wide range of deductions for expenses and supplies, but if your GROSS income is higher than $30,000 you MUST register for, and collect HST.

[Ariana3]

I am researching this and have come to the same conclusion, most airbnb operations are likely considered to be businesses if linens and cleaning services (i.e. cleaning fee) are offered.  Also, gross revenues $30,000 or more require HST to be collected/paid.  If you haven't been collecting it, doesn't mean you are not on the hook for it.

Does anyone know an Accountant that is experienced in Airbnb matters?

[Patricia2162]

Gross income as a short term rental or in general? I have an other job where I make more than 30k a year. I’m thinking on starting Airbnb.