The 13 per cent tax will be applied to the total price paid for the property when sold, so could amount to tens — or even hundreds — of thousands of dollars.
While the sale of a previously occupied residential property is generally exempt from HST, the Tax Court of Canada ruled in March that the sale of a condo unit rented out on Airbnb for a number of short-term leases was subject to the tax.
Also income tax on the capital gain. While a property is used as a rental, it is not covered by the principal residence exemption. Not sure when the property is mixed use (live in it one week, rent it out the next week).
CRA says:
Every time you change the use of a property, you are considered to have sold the property at its fair market value and have immediately reacquired the property for the same amount. You have to report the resulting capital gain or loss (in certain situations) in the year the change of use occurs.
Remove the capital gains tax and this tax and the others and re-impose HST. No reason to exempt it.
For some reason, I agree with you.
UM, quite sensible actually.
Hotels, AirBNB’s, all short term rentals should be subject to exactly the same tax, zoning, and safety requirements.
ie none. The hospitality-taxation scam is a disgrace.
The Gummint needs the money, dude!!!!! Pay up or get out!!! The Gummint needs the money!!!! How they gonna pay for all my problems, disabilities, and residential school nightmares if they don’t get the money?
Thing is it’s local governments that operate the high-tax hotel-cartels. Decentralized powers is a failed paradigm.
The centralized Trudeau government (i.e. PMO) is so much more efficient at doing things than local government!!!!
It’s a wealth tax. The communists and hodgepodge are coming for your wealth. Coming for your savings. Coming for your investments. Coming for all your personal sacrifice and deferred gratification. It’s nothing more than the politics of envy. These people have ALREADY PAID $$$ their “fair share” … but they STILL have more than the lazy, the uneducated, and the spendthrifts. So they must turn their wealth over to the most inefficient disposers of money ever organized to steal … the government
I went all cash a couple of decades ago, low return on investment, low taxes. Apparently I have now moved into a new tax bracket with zero increase in cash assets and the government wants quarterly payments on money not received. I have never failed to file and always pay all monies owed at year end when the taxes have been filed. W T F is this new B S ?
Airbnb owners already pay HST (Harmonized Sales Tax = provincial + federal) on their rentals, so what changed?
Nothing, this is another failed appeal from a landlord avoiding HST, on non-residential property.
In other words, it aint a story. Yes we’re taxed to death, that’s a story.
And according to jornolithp Clarrie (doesn’t provide details such as case name, number, or reference but) who does un-enlighten us with:
… the case may come as a surprise to the public (only if attempting to understand the reporter)
… there’s a 90 per cent threshold of renting out the property which determines if HST is applied upon sale (long established tax law)
… the court ruling doesn’t mark any change in the law (brilliant reporting, not)
… the 90 per cent threshold doesn’t have a clear definition (that IS news, which should be mined by an intrepid reporter)
In unrelated news:
Tax Court of Canada/Hamilton has closed permanently due to gun violence, after re-opening in January, after being closed for un-reported reasons.
When those of us who are taxed are finally broke, I wonder who they will get the money from?
I can’t see Somalia war lords paying up.
Tax the rich
Feed the the Poor
Till there are no rich no more …
https://youtu.be/lSYFJB7o9ZQ?si=34SsCJptvIQMvxHs
My generation “got it” decades ago. As the young, creative, talented, rock stars started giving the government 85% of what they made. When we punish success … we become a nation of losers.
Actually Trudeau taxes the poor and gives to the rich.
That’s a question I asked an OMAFRA toady when her heroes raided and shut down a small butchershop in Summerstown Ontario years ago. After she skated and stick-handled and dodged and ducked every question I threw at her about why they had picked on this little shop, I threw this at her:
“Would you mind answering one last question?”
Certainly Sir.
“Have you guys figured out where your paycheques are going to come from after you’ve closed down the last business in this province?”
I can’t answer hypothetical questions Sir.
“Seems to me you won’t answer any questions.”
I agree entirely. All government officials, elected or appointed, are in the business of lying. Trying to get the truth out of them is like squeezing water out of a stone.
Free labor.
Wait, don’t they charge HST on AirBNB rentals already? I have no idea. But if they do, how can the government tax twice? If they don’t, just add HST and remit it to the government. You’re a business if you’re renting real estate. Have the first $30,000 HST free just like it is now. What am I missing?
There’s lots of tax on tax. Justatwit’s carbon tax is based on the principle of taxing something which has been already taxed.