CALL US: 905-468-8985

EMAIL: stay@niagaraholidayrentals.com

Convert to
v


FirstPrev Page 1 of 1 NextLast

A must read for anyone in the vacatin rental industry or just thinking about it!

Added: Jan 21, 2018
Category: For Vacation Home Owners

Publication by revenue Canada about income tax and HST on Accommodation Sharing (Short Term Renal)


Doing short term rental book keeping isn't for the faint heated.    Especially in Ontario because of the high real estate prices and being an HST province.

The above link  was published in March of 2017 and is a bit easier read than the 2007 information Bulletin GE-025-e - The Purchase, Use, Sale of Vacation Properties by Individuals.   While this is a must read for any vacation home owner in Ontario, its a slog.   So starting your education into the world of tax is best with using the link to Accommodation Sharing  and then read GE-025-e  and then source a tax specialist in this area that can look at your individual situation and give you good practical advice.

Tax reporting will get further complex in Ontario with the recent approval of the ability for municipalities to implement an accommodation tax.  This is new legislation as of December 2017 ,  so there isn't much info out there .  Our local community in Niagara-on-the-Lake is considering implementation in 2018.   If, How and When is under review by the town council.

And the answer is NO!  Some people think that if I only list on AirBnB that  insurance, regulation and tax don't apply.   This could not be further from the truth.  And in fact Virgina is working with provincial authorities on how to partner with them to better regulate and monitor short term rentals.   In my recent discussions with my Accountant, it was mentioned that this year there are far more audits of short term rentals than ever before as 2017 was one of the first years AirBnB reported to Revenue Canada about the information of its clients.  What information was provided, I don't know, but the CRA is really cracking down on short term rental income.

AirBnB, HomeAway, VRBO, TripAdvisor, FlipKey, Booking.com, Canada Stays or any of the other online marketing websites are only really on line travel agents.   There is nothing special about them.  Here is an article declaring February 7th, 2018 as book direct day, but its a great read to clairfy what is really going on with these on line travel agent's websites.

If you are a non resident of Canada, it can be even trickier.  Get good solid advice from knowledgeable professionals.  Keep excellent and easy to understand accounting records.   Be transparent.    The hassle, fines and the potential tax liabilities are huge.  You don't want to be the held up as the example for all and be hit with the worst.

In our community failure to get a short term rental license is a fine of $500 per night rented.   If the Town of Niagara-on-the-Lake implements an accommodation tax, these fines for not complying only go up!

A good option to help you is to join a local or larger industry association like the NVRA.ca,  about 50 or so vacation rental owners joined together to share information and we are based in Niagara-on-the-Lake.   Often this helps not only supporting each other as we all know the challenges of running a small business, but its a small business with arms and legs that reach in to big business, increasing regulation and in Ontario, huge tax implications.  




Continue Browsing

FirstPrev Page 1 of 1 NextLast
 Categories
[Expand]For Vacation Home Owners (23)
[Expand]News About NOTL (37)
[Expand]Stuff Eric & Janet Recommend (33)
[Expand]Understanding Mortages by Laird Scott (1)
[Expand]What's up (29)
[Expand]Where to eat! (1)

Search
Go

Archive
March 2018 (3)
January 2018 (2)
December 2017 (2)
November 2017 (2)
October 2017 (2)
September 2017 (4)
August 2017 (1)
July 2017 (6)
June 2017 (6)
February 2017 (4)
January 2017 (2)
December 2016 (3)
July 2016 (1)
May 2016 (3)
April 2016 (2)
March 2016 (2)
February 2016 (1)
January 2016 (3)
December 2015 (6)
November 2015 (1)
June 2015 (2)
April 2015 (1)
March 2015 (4)
February 2015 (5)
January 2015 (4)
October 2014 (1)
July 2014 (1)
June 2014 (2)
February 2014 (2)
January 2014 (4)
December 2013 (2)
November 2013 (2)
October 2013 (1)
August 2013 (5)
July 2013 (11)
June 2013 (1)
May 2013 (5)
April 2013 (1)
March 2013 (3)
February 2013 (1)
January 2013 (1)
December 2012 (3)
November 2012 (6)

Other
Show most recent

Comments:

Don't miss out! Be the first to comment.

Comment:

Name:  
E-Mail:  
Anonymous
 
Submit


Powered by CiiRUS Property Management Software