Understanding the New Tax Rules for Short-Term Rental Income
The Canada Revenue Agency (CRA) has recently announced updates to the rules governing eligible deductions for short-term rental income. These changes, effective for the 2025 tax year, impact individuals who earn income from platforms like Airbnb or VRBO, clarifying what expenses can be claimed to reduce taxable income.
📝 What Has Changed? Under the new regulations, only expenses directly related to earning rental income are deductible. Homeowners can no longer claim full property expenses unless the property is used exclusively for rental purposes. Mixed-use properties must now allocate expenses based on the percentage of time the property is rented.
✅ Key Deductions Still Available
- Mortgage interest and property taxes (pro-rated)
- Insurance and utilities (pro-rated)
- Advertising and professional fees
- Repairs and maintenance specific to rental activities
🚀 How SPG Tax Can Help Navigating these changes can be complex, but SPG Tax is here to ensure you get the maximum deductions allowed. Our tax experts can help you understand your eligibility and file your taxes accurately.
👉 Take Advantage of Our Expertise! Contact us today to ensure compliance and optimize your tax returns. Get in touch now and let us handle your taxes with ease and confidence!