BELOW ANOTHER GREAT ARTICLE FROM OZZIE JUROCK. THINGS YOU SHOULD KNOW
THE TAXMAN COMETH
Vancouver’s empty home tax to go to 1.25% then 1.5% and then to 2% in the next couple of years.
THE TAXMAN COMETH (BYE, BYE BnB?)
Canadians who rent out their homes are starting to come to grips with the reality that they can run, but not hide, from the taxman.
Never mind your building strata corp. saying “thou shalt not use BnB” or the city saying you can only rent it out if you live there … now you must worry that:
a) You must declare the income
b) By renting BnB you change the status of your private residence to investment property and lose all/some of your free capital gain exemption. HUH?
c) If you collect more than $30,000 you must pay GST!
Remember: Even if you’re renting out a part of the home you live in through Airbnb, you still must claim it.
Expect CRA to get tougher. The CRA says it’s losing billions of dollars every year through unreported income from the sharing economy, which includes Airbnb.
But the agency is taking a broader approach to the problem.
“The Canada Revenue Agency has identified the sharing economy as an area of risk for non-compliance,” reportedYahoo Finance Canada, who added that the agency is “identifying the highest risk files for compliance action” to ensure that hosts are paying their fair share. “The CRA will continue to monitor this sector, focusing our efforts on hosts that are providing short-term accommodations as a business.”
How do they go after the culprits? CRA has now an additional $66 million to target non-compliance in the digital economy!