- Short-term rental market facing crackdown from governments
- Restrictions and licensing requirements introduced at provincial and municipal levels
- Income tax deductions disallowed for short-term rentals not meeting licensing requirements
- Property owners looking to exit short-term rental market need to be aware of GST/HST consequences
- Understanding the term “residential complex” is crucial for determining GST/HST applicability
- Property owners may face GST/HST self-assessment obligations when converting rental properties to residential complexes
- Self-assessment of GST/HST required when property is appropriated for personal use or enjoyment
- GST/HST on property conversions cannot be deferred, even if there is no cash flow from the conversion
Source: bccpa.ca
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
