Capital gains canada

[Connlan0]

Hello, 

Does anyone in Canada know if you pay capital gains tax on your short term rental when you sell your house? If you pay income tax on the rental during that time would that effect the capital gains tax?

Thanks

[Nicole2796]

This is something I’m also curious about. Apparently it is related to whether or not there is a change of use in your property as a result of the number and length of stays in your rental? A change from personal property commercial designation?

I am unclear of this and likely going to consult an accountant. Seems like if it is true, there could be major financial implications upon sale of your rental home. 

[Nicole2796]

I just found an article on the CRA that states if you only rent a small part of your property such as a room, don’t claim capital expenses (CCA) and make no structural changes to your home for the Airbnb, your property will not be subject to a change of use and therefore will have no impact on capital gains. 

[M199]

@Connlan0, @Nicole2796 

Read the official CRA Capital Gains Publication and then maybe consult a tax accountant.

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4037/capital-gains...

[Annie1372]

@Connlan0 @M199 @Nicole2796 

If ever you talk with a Canadian specialist on this topic, please share your findings here after.

thanks