Having an AirBnB is a great way to own property and earn rental income.  It’s important to know how you can pay less taxes based on expenses that you can deduct.

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Some common expenses incurred for renting an Airbnb that you can deduct include, but are not limited to:

· New bedding, toiletries

· Cutlery, plates, drinking glasses, wine glasses

· An extra key and lockbox, locks for personal items

· Laundry detergent

· Snacks

· Property taxes, insurance

· Utilities (heat, hydro, electricity, water)

· Municipal annual licensing fees where applicable

· Mortgage interest (but NOT principal payments)

· Cable and internet (if provided to your guests during their stay)

· Maintenance costs

· Cleaning services

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If you earn rental income from a condominium unit:

· Deduct condominium fees that represent your share of the upkeep, repairs, maintenance, and other current expenses of the common property.

· You can't deduct land transfer taxes, payments of mortgage principal

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GST/HST considerations:

· Register to pay HST/GST if you make more than $30,000 in sales, either from Airbnb or a second business/income.

· Airbnb does not collect, nor do they charge GST or HST to the renter, so it’s up to you to add the amount to your taxes and remit to the government where applicable.

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For more information on rental income deductions, visit the CRA website.

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