Airbnb Taxes Every Host Should Know

Are you an Airbnb host wondering about your taxes? Are you considering selling it? Or simply want to know the tax implications associated with it? Many of my clients have the same concern about their investment properties as a short-term Airbnb host.

In today's video, I will not only share what the tax implications are but how they are different when you own your personal name vs corporation. I also talk about the tax implications of selling your Airbnb rental!

If you have any questions or thoughts after watching this video, leave a comment below, and I’ll respond as soon as possible.

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[badiro]

Hey Cherry. As an accountant (CPA in progress), I have to admit that it's a true pleasure to listen to you explain these concepts, otherwise complicated. The world needs more accountants like you.
Would you please tell us more about a "strong documentation as to why the short term rental is providing services similar as a Hotel would provide"? What type of documentation? And should we send the documentation to CRA when we file the first T2?

Again, you're a gem. Thanks a LOT

[norax]

Hi Cherry, you are god sent! So glad to have found your channel. Just a quick question on the CPP portion if claiming the short-term rental income as business/self-employed income. If I work for a company who deducts and pays the CPP (EE &ER portion) at maximum, the short-term rental is just like side-job, does it mean that I don't have to remit the CPP via short-term rental at all?

[InvistanoExteriorcomEricoSouza]

The best video I listen on this subject so far! Congrats. I just called you and I will book a consultation. It is just a pity, you don't take clients from Quebec....

[BrendanRiley]

What happens if the owner rents out to a long-term tenant and then the tenant does an Airbnb operation with approval from the landlord? That is rental arbitrage. Does doing this change the status of the property for the landlord (ie. from residential to commercial)? Or is it unaffected, because the Airbnb operator is not the owner?

[royyabut]

Hello Cherry, very informative, question though if the property is only use 6 months for Airbnb and 6 months for personal use am I exempted in paying the HST when I sell the property? Thanks, Roy

[myway]

How does airbnb tax work with just a room in my home? I earned 3k last year do i nred GST HST ID?

[wellandstock]

Thank you and like your video Cherry. Is any way to minimize HST when sell STR property? Does that time based calculation help to avoid/reduce HST if I occupy as personal residential longer than STR, what is the considerable percentage?

[derekchan]

Excellent video. Unfortunately I have had to do a lot of self assessments in the past. Could you comment from a Capital Gains perspective if the adjusted cost basis is now based on the self assessment value?

[bjer]

These videos are extremely helpful. Do you have any content that describes how depreciating the house works for when operating a vacation rental? I have been looking but have not come across this yet.

[MariamMariam-uevz]

Thank you helpful video! For someone hosting their basement apartment out of their principle residence on AirBnb, will this cause the entire property to be deemed commercial and subject to HST when sold? Or might only the portion of the home rented on AirBnb be deemed commercial and thus only that percentage be subjected to the HST when sold? Or does the government never consider that a principle residence can be turned into a commercial property, even if a portion is rented on a STR platform?

Particulars to my situation:
-Total AirBnb income from the basement apt will be less than $30k per year.
-80% of reservations are under 30 days.
-Basement apartment contains 1 bedroom out of 4 bedroom home.
-I have not registered for a GST number.
-Property was purchased as resale residential.
-Occupancy rate is ~90%

[annswallow]

Great content, Cherry. What is the best way to get hold of you? I am helping my partner set up his home in NB to STR. We need to know the best tax set up for him. We also need an accountant to do our taxes for the flip we did in 2021. Thanks, Ann

[kapasound]

Thank you for the video and great tips. Can you please elaborate on the new build home and HST exemption. I purchased a new home and paid the full HST. Do you mean I can get a refund of the HST I paid since this will be a short-term rental? 😊

[mm-gjmy]

Hi Cherry, very helpful video! If renovating the basement of primary residence for short-term rental, can CCA be claimed on those renovation capital expenses? What are the implications when selling the primary home?

[thisisahbu]

Hello Cherry, thanks so much for this video. You have explained it really well.

Got a question on reporting expenses. Let say I intended to rent 179 days of the year of my cottage as short term rental and only been able to rent it out for 100 days. When I report the expenses (let say mortgage interest), do I report
- 0/365 - cannot claim
- 100/365 - the number of days rented out?
- 179/365 - the number of days I intended to rent out?
- 365/365 - the entire amount?

Much appreciated

[deejay]

Informative video. I’m thinking about purchasing a property in Ontario to list on Airbnb but with minimum rentals of over 30 days.
In this case would I be exempt from having to charge HST even though the annual income is greater than $30K?

[wuanthonykh]

Hi, for my primary residence, if I Airbnb out the entire unit for 180 days, does it make my place no longer a “primary residence” and it becomes an investment property ? I.E when I sell my unit I have to pay capital gain tax

[markting]

thanks for the info Cherry-- if I rent out two rooms in my primary residence on aribnb/VRBO-- I understand the income is fully taxable but can I write off my expenses (% of internet, property tax, mortgage cost, cleaning, utlities, supplies etc)-- so that only the net income is taxed? thanks in advance.

[amjadjaki]

Hello, very informative video. My question is if house is host primary residence does this rule still apply? And what he host make less than 30000 in a year with primary residence?

[saveriochimenti]

Regarding rental arbitrage. If the property is leased long term to someone who uses it as a STR is HTS payable if the landlord sold it.
The landlord has leased it long term but the tenant is renting it out short term?

[nilofervora]

Hi Cherry, how would we go about setting upba structureif we operate airbnb arbitrage in states as a canadian resident so that we dont pay taxes twice.