Thinking of Investing in Toronto OR Starting Your Own Airbnb? Let's Chat! 📲Call or Text: 647-867-1763 ✉Email: Fadynakhla@royallepage.ca 📆Schedule A Call: calendly.com/fadynakhla
@victoriam597 the government wants money. Someone has to pay them to keep up their spending. It's either your properties or your incomes. I think the choice is very simple. As for housing supplies, do you really think the Canadian government cares? We can all live in gutters, as long as the government gets the money
I think the reality is the government is going to tax your income whether you own properties or not. EVEN if they took 13% HST on all property sales, I very highly doubt anyone would get a tax break because like you said, they just want the money.
What is your opinion on if you have a long term lease with someone that does Airbnb arbitrage? Technically you have a long term lease and another person is using the property as a short term rental. How do the rules applied when you sell?
That's a great question ! We'd need to consult a tax lawyer for this very specific case but my opinion on this would be - if the tenant is using the unit for Airbnb and it qualifies for an exemption, same as ownership, in terms of the unit being their "primary residence" and they've rented for less than half the year (50%) short-term rental - then when the seller goes to sell, there will be no HST on the sale. In Toronto, whether you're an owner or tenant, you must follow those rules. However if you're in another municipality or in cottage country where there is no limit, and your tenant is primarily using the unit to run an Airbnb - I believe you as the owner will be responsible for paying HST when you sell the property especially if the tenant was claiming that Short-term rental income - because the property will still be classified as "commercial", regardless if it was by you as the owner or not.
If i am doing AIRBNB for just 6 months (180 days) on short term rental my house. Still i need to pay 13% tax ? even my rental income is around 27k. Can you please answer ?
Hey ! I would definitely consult an accountant or tax lawyer but based on the CRA website, If you're doing Airbnb for less than 50% of the year in your primary residence which is the case here at 180 days/365 days per year - then you shouldn't need to pay the 13% HST when you sell your home. This is regardless of how much money you make. Hope that helps!
Straight from the CRA website, “The purchase of a vacation property is also taxable where the property is not used primarily (more than 50%) as the vendor's place of residence and all or substantially all (90% or more) of the rentals of the property are for periods of less than 60 days” So if the property is NOT your primary residence and is used 90% or more of the time as a short term rental, meaning a majority of the time you rent it, it’s nightly as a short term rental, then HST will be due on the sale. So this will not apply to any property in Toronto as the city bylaws require the unit to be your primary residence and only allow you to short term rental for maximum 180 nights per year
Thinking of Investing in Toronto OR Starting Your Own Airbnb? Let's Chat!
📲Call or Text: 647-867-1763
✉Email: Fadynakhla@royallepage.ca
📆Schedule A Call: calendly.com/fadynakhla
This is not enough. All rental properties should have 13% HST upon selling, on top of all other taxes.
As someone who owns properties I do not agree!!! 😂 and the less people who own properties means that there is also less rentals for people!
@victoriam597 the government wants money. Someone has to pay them to keep up their spending. It's either your properties or your incomes. I think the choice is very simple. As for housing supplies, do you really think the Canadian government cares? We can all live in gutters, as long as the government gets the money
I think the reality is the government is going to tax your income whether you own properties or not. EVEN if they took 13% HST on all property sales, I very highly doubt anyone would get a tax break because like you said, they just want the money.
Toronto municipality becoming beggar for anywhere they can find new ways to take your money.
I was hoping you’d talk about this!!! Thanks for the info.
What is your opinion on if you have a long term lease with someone that does Airbnb arbitrage? Technically you have a long term lease and another person is using the property as a short term rental. How do the rules applied when you sell?
That's a great question ! We'd need to consult a tax lawyer for this very specific case but my opinion on this would be - if the tenant is using the unit for Airbnb and it qualifies for an exemption, same as ownership, in terms of the unit being their "primary residence" and they've rented for less than half the year (50%) short-term rental - then when the seller goes to sell, there will be no HST on the sale. In Toronto, whether you're an owner or tenant, you must follow those rules.
However if you're in another municipality or in cottage country where there is no limit, and your tenant is primarily using the unit to run an Airbnb - I believe you as the owner will be responsible for paying HST when you sell the property especially if the tenant was claiming that Short-term rental income - because the property will still be classified as "commercial", regardless if it was by you as the owner or not.
If i am doing AIRBNB for just 6 months (180 days) on short term rental my house. Still i need to pay 13% tax ? even my rental income is around 27k. Can you please answer ?
Hey ! I would definitely consult an accountant or tax lawyer but based on the CRA website, If you're doing Airbnb for less than 50% of the year in your primary residence which is the case here at 180 days/365 days per year - then you shouldn't need to pay the 13% HST when you sell your home. This is regardless of how much money you make. Hope that helps!
@@Fadynakhlarealestate Then what about 90 percent threshold they talked about ? what is that thing ?
Straight from the CRA website, “The purchase of a vacation property is also taxable where the property is not used primarily (more than 50%) as the vendor's place of residence and all or substantially all (90% or more) of the rentals of the property are for periods of less than 60 days”
So if the property is NOT your primary residence and is used 90% or more of the time as a short term rental, meaning a majority of the time you rent it, it’s nightly as a short term rental, then HST will be due on the sale.
So this will not apply to any property in Toronto as the city bylaws require the unit to be your primary residence and only allow you to short term rental for maximum 180 nights per year
Canada sounds like hell