Rental income is taxable – even for Airbnb
Airbnb recently sent notices to 80,000 Canadian hosts to remind them that sharing their home is considered rental income by Canada Revenue Agency (CRA). This means you’ll need to include money from Airbnb rentals on form T776, which will increase your overall employment income.
While it may be taxed in a high bracket, you can lower the taxable amount by deducting expenses related to the rental. You can claim the full cost of advertising expenses, office costs, professional fees, management fees, salaries or wages, and travel costs. If the property is your principal residence, then you can claim a portion of your mortgage interest, property taxes, insurance, repairs and maintenance, landscaping, utilities, and depreciation on fixed assets like furniture, computers, or even your car. If it isn’t your principal residence, then you can claim depreciation on the property. Remember to keep all your records.