Airbnb Canada Tax Question

[Joel951]

I am looking to purchase a property and will be renting it on Airbnb. I will be remortgaging my current residence to pay for the rental property in full (in cash). Can I claim the mortgage interest, as a tax deduction if the mortgage is on my current residence?

[Lorna170]

@Joel951   You need to speak to a tax accountant.  Currently in the US, a mortgage on your residence cannot be claimed as a tax deduction for a rental property's expenses.

[M199]

@Joel951 

If believe, in Canada, you cannot claim mortgage interest on your principal residence.  Which is appears that you will be doing.  I.E, remortgaging your primary residence to pay for the secondary property.

Definitely you need to talk to a legal professional, probably lawyer, tax accountant, mortgage  holder, etc.  Don't forget about your insurance company, local bylaws.  Also, consider legal tax ramifications, i.e. sole proprietorship vs incorporation.  Of course, there is also capital gains to be considered, which our Federal Government is looking at reducing the current exemption from 50% to 40%.

Good luck on your research.