Posted on January 29th, 2024 in Domestic Tax

Federal government denies expenses on short-term rentals

Toronto iconic condos and skyline

The Federal government has introduced new proposed measures to disincentivize short-term rentals that aren’t in compliance with their local jurisdiction as of January 1, 2024.  This joins other housing affordability legislation like the Underused Housing Tax Act. 

The 2023 Federal Economic Statement noted that in the cities of Toronto, Montreal, and Vancouver, there are an estimated 18,900 homes that were being used for short-term rentals (and more than half of Toronto’s short-term rentals are unregistered). 

These new measures may result in increased rental income by the taxpayer, making the short-term rental business model less appealing and viable.  Read further details in this article, written by RSM Canada.

 

Article written by RSM Canada and referenced with permission as a member of RSM Canada Alliance.