Not Renting Short Term Anymore?

If you’ve been renting your property short term on one of the popular rental platforms like Airbnb or VRBO, and you stop, there are likely tax implications that you may not be aware of. Whether you choose to sell, rent long term, transfer to a relation, or use personally, the Excise Tax Act requires tax to be remitted at Fair Market Value once certain conditions have been met. 

The Tax Court of Canada recently decided in 12351231 v. The King  that the sale of one of these short term accommodation properties is taxable, and generally that will be the tax status of most other similar properties. However, every case is unique and with the help of a former CRA auditor, appeals or rulings officer you may be able to get a proactive ruling (or appeal if you have already been assessed) that the sale or change of use is not subject to tax. We know how to frame the facts of your case to best support a favourable ruling or appeal, and remember, we offer to take your case contingent on winning.