Ensure you are able to Claim Expenses Against your Rental Income

DECEMBER 20, 2024

Ensure you have any and all licenses, permits and registrations required to operate your short term rental residential business in place before December 31, 2024. During 2024 new rules were introduced which deny the deductibility of expenses against short term rental income if you are not compliant with registration, license and permit to operate a short term rental business. This new provision covers rental income from residential property such as cottages, condos or Airbnb that are rented or offered for rent for less than 90 consecutive days.  

The expenses will not be denied as long as applicable registrations are made by the end of 2024. We strongly suggest you review whether there are any registrations required for your short term rental. Additional information for Toronto short term rentals can be found here - 10 Things You Should Know About Short-Term Rentals – City of Toronto and for the Muskoka Media Release - Short Term Rental Accommodations Will Require a License Beginning in 2025 - Township of Muskoka Lakes.

Please reach out if you have any questions.