Things could start to get more complicated for those who rent out their property on a regular basis.
That was Former President of Ontario Real Estate Association Ray Ferris, talking about a recent ruling.
Ferris gave an example of just how that would add up.
That good news is that it won’t apply to everyone.
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.
It’s a ruling that will likely have big implications for short-term rental operators as it clarified that the CRA can charge the tax in cases similar to the ruling.
Written by: M. Leblanc