Tax Change: Advise Taxpayer About Short-Term Rentals

Taxpayers who own a residential property and rent it out must be aware that income reporting is required in most cases.  Further if the rental was for periods of less than 90 days, expenses to offset that income could be restricted.  These Short Term Rental (STR) rules are new for the 2024 tax year.  Here’s what you need to know based on recent directives from Finance Canada and the CRA, which includes a brief reprieve for some STR owners in 2024:

Over 90% of professionals are having a tough time finding skilled staff, according to this month’s Knowledge Bureau Report Poll.  We thank Anne Laurin, Founder and CEO of Tax Busters in Barrie, Ontario for her astute commentary on this critical issue for Canadian tax professionals.  She offers several reasons for this troubling trend, and we hope you will weigh in too.

Many Ontarians may already be enjoying their summer vacations in their home province, fully mindful of the fact that doing so, they are earning a refundable tax credit.  But, did you know that if you make the great decision to come to the DAC Acuity Conference, being held October 16 to 18 in beautiful Niagara Falls, you could also qualify for the Ontario Staycation Tax Credit if you linger before or after for some personal R & R?  Details follow:

Knowledge Bureau Report will be on a summer vacation next week, but Knowledge Bureau is open for your questions, registrations in courses and student support, as usual.  Here’s an opportunity to review your August summer school options and under your belt before the fall, with some new offerings from Knowledge Bureau:

Intended for successful business owners, entrepreneurs and professionals of all types, author Dean Kendall’s “Stop Paying Hidden Investment Fees” will provide a better understanding of the fees you pay, their impact on your goals and your options for pursuing a better course.  This book analyzes some common hidden investment fees and it goes on to explain their impact on a customer’s financial return.

Intaxication is defined as the euphoria taxpayers feel when they get their tax refunds, only to find their euphoria diminish when they realize it’s their very own money CRA has been holding onto.  This year, the government kept a new record amount: the average tax refund was $2,071. It’s hard-earned cash Canadians could be using throughout the year to fight inflation or invest.  Is there anything you can do about that?  Indeed there is, with the help of your Personal Tax Services Specialist.

Looking for extra money to fund rising costs?  The tax return is one such source, especially because it is possible to reach back and correct errors and omissions from the prior 10 years to generate a tax refund.  However, there are certain limitations when it comes to the deduction for CCA (capital cost allowances) and other permissive deductions. Notably, CRA has not changed its rules on this matter since 1984.   In this feature, Part 1, we’ll discuss how to adjust a return. Part 2 will discuss the specific rules concerning CCA.