Earning over $30,000 on Airbnb Canada

[Glen760]

Hi All,

I have read horror stories that if you earn over $30,000 a year in short term rental CRA consider that you have converted the use of your property from residential to commercial and you would be liable to pay HST on the purchase price  of your property (i.e. on a $1m home you would have to send a $130k cheque to CRA) and HST would be added when you sold to property to the next buyer.

I also believe if you incorporate you would be seen as doing the same.

I find this hard to believe with so many properties in Canada on Airbnb that everyone is paying HST on the value of their property.

Does anyone know anything about this?

[Gwen386]

This article discusses $30K threshold

https://turbotax.intuit.ca/tips/earning-income-from-airbnb-4176/amp

[M199]

@Glen760 

Hi from Wiarton, Ontario

Likely true,  but.....

Cdn taxes can be complicated, especially with GST, Municipal Accommodation Tax, Rental Income, Capital Gains/losses and Commercial Insurance, all starting at how the property is designated by tax legislation.

You really should consult a tax accountant or lawyer who can specifically speak to your situation.  No one on this discussion board has the legal right to provide advice.

Best regards.