GST implications if we ever convert to longterm or no renting in the future.

[Philippe-and-Kaylee0]

I keep reading if you do this, they are going to get you with GST or HST on the full value of the property!!  This cant be right? 

[Breanna]

Tax implications are always have to be difficult to navigate don't they @Philippe-and-Kaylee0?

I just wanted to stop by and leave a link to this Airbnb article regarding tax collection in Canada which makes mention of longer-term stays.  

I'll also tag another experienced Edmonton Host who might have some insight on this - @Dave-and-Deb0 

[Dave-and-Deb0]

That is not right.  You will likely have capital gains tax though when you sell.  

[Philippe-and-Kaylee0]

Yes I've talked to 3 CRA employees and they don't know anything about it ether. There's is a website from BDO investors CPA that mentions it. Because converting back you effectively sold and rebought the house. 

https://www.bdo.ca/insights/tax-considerations-airbnb-hosts#:~:text=Your%20Airbnb%20rental%20income%....

Look towards the bottom. 

[Dave-and-Deb0]

Can you quote the section in the article as I skimmed it and do not see a mention about this.  There is something about if you are buying a new home strictly to use as a short term rental.

[Philippe-and-Kaylee0 · Accepted solution]

 

[Shi3990]

I am also researching the same topic. My Airbnb is in Toronto and HST is 13%. Since a guest can book a stay that lasts a few days or a few months, does this implication mean a host should stick to short-term booking only or long-term booking only?

[Philippe-and-Kaylee0]

This is a massive problem if they were to ban short term rentals etc.. or it doesn't work out and we go back to Longterm renting. In Alberta we're not too bad at 5% GST. But imagine in other provinces with 15% HST. That's more than a $100,000 tax bill if you convert to Longterm renting lol

[Dave-and-Deb0]

Yes, I agree.  Please also remember, or learn about, the Alberta Tourism Levy.

https://www.alberta.ca/tourism-levy