Capital gains on primary residence

[Shahab12]

I keep looking for a clear answer for my question online, but I haven’t had any luck so far.

I understand, the portion of the house I live in (my primary residence) is generally exempt from capital gains tax. This means that the capital gains tax would apply only to the AirBnB rental portion (the basement in my case). Now, if I claim only supply expenses (such as shampoo for guests, cleaners, etc.) and also the utilities (the portion of electricity, water, and gas used in my basement) as deductibles, I’m focusing on the operational costs directly related to my Airbnb business, because I’m not claiming property taxes, mortgage interest, or renovation costs from the portion exclusively used for rental. It means I am excluding capital expenses and home improvements. Based on the current tax regulations, is this going to help with keeping my whole property exempt from capital gains?

By the way, I asked the same question from the accountant who’s filling my tax (this is my first year on Airbnb). No meaningful guidance from her either!
My property is located in Mississauga, Ontario.

[Paula]

Hello @Shahab12, welcome to our community.

Have you reached out to fellow Hosts in your area to see how they deal with this? Here is the link to the Local Host Clubs where you can use the filter to find the closest one to your location.

I hope you find some great suggestions 😊