Solo 19

You put your home on Airbnb.

The bookings are strong. The income is rolling in.

But according to CRA, your home may no longer be considered a home.

It may now be treated as a commercial property — like a hotel.

And when you sell, you could face a significant and unexpected tax bill.

In this episode, we cover:

• How Airbnb can trigger CRA's "change in use" rules

• Why short-term rentals can jeopardize principal residence treatment

• The 2024 court case where CRA successfully applied HST on sale

• How one homeowner could face approximately $150,000 in HST alone

• Why switching back to long-term rentals may still trigger tax consequences

• The hidden trap between income tax and HST rules

• Why many Airbnb owners don't discover these issues until it's too late

This isn't just about rental income.

It's about how one decision can completely change the tax treatment of your property.

And in many cases, homeowners only discover the consequences after the property has already been sold.

If you own an Airbnb property — or are considering converting your home into one — this is a conversation worth having before CRA has it with you.

Links:

📋 For the full episode breakdown and additional tax resources, visit:

🌐 theadvisorstable.com

📞 Looking for Trusted Tax Advice?

Connect with Sankalp (Sunny) Jaggi at Cedar Consulting Group

📧 [email protected]

🌐 cedargroup.ca

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👇 Comment below: Did you know Airbnb income could change the tax status of your home?

LEGAL DISCLAIMER: This video is based on a real case, but names and some details have been changed to protect client confidentiality. This content is for educational purposes only and does not constitute legal, tax, accounting, or financial advice. Always consult a qualified professional regarding your specific circumstances.

#TheAdvisorsTable #CRA #Airbnb #Tax #RealEstate #HST

00:00 – The Airbnb Trap Nobody Sees Coming

00:18 – Meet John: The Executive Who Thought Airbnb Was Easy Money

00:38 – Why He Chose Airbnb Instead of Selling

01:05 – The CRA "Change of Use" Rule Explained

01:13 – When Your Home Becomes a Commercial Property

01:50 – The Ottawa Airbnb Court Case CRA Won

01:57 – Breaking Down John's $150,000 HST Problem

02:47 – How $500,000 in Airbnb Income Nearly Disappeared

03:14 – The Capital Gains Tax Hit Nobody Expects

03:45 – Why Airbnb Hosts Can End Up Owing More Than They Made

04:23 – Every Exit Strategy That Still Triggers Tax

05:59 – Why You Need Both Income Tax and HST Expertise Before It's Too Late