AIRBNB HOMES SALES SUBJECT TO GST/HST
FCA CONFIRMS SALE OF AIRBNB PROPERTIES SUBJECT TO GST/HST
The Federal Court of Appeal (“FCA”) has recently confirmed a Tax Court of Canada (“TCC”), ruling that the sale of a property used for short term rentals on Airbnb are subject to Federal GST/HST.
In the short term, this decision will increase the cost of properties at a time when real estate prices are already deflated across Canada. We should expect to see that depreciation hit condominiums.
With proper planning, this tax consequence (i.e., GST/HST applied to the sale of Airbnb properties) can be ameliorated, but experienced GST/HST counsel will be required.