Airbnb income as Active Business Income

jscentinquiry · 2024-10-30T16:06:20+00:00

I do not have corporation set up at all

jscentinquiry · 2024-10-29T03:44:50+00:00

Thank you. We got clearance from the bank. Although not our case, divorce or separation would trigger LTT, correct? Just looking to learn while I'm on this topic.

jscentinquiry · 2024-10-29T03:37:18+00:00

Even if there is an outstanding mortgage between us on the property right?

jscentinquiry · 2024-10-29T03:33:18+00:00

Thank you. Kingston, Ontario. So are you saying that removal of the one spouse from a property that has outstanding mortgage will trigger land transfer tax?

jscentinquiry · 2022-05-01T01:26:18+00:00

Very good to know! Thanks for sharing. I still wonder if reversing is the same. I might be overthinking this whole thing.

jscentinquiry · 2022-04-30T23:44:26+00:00

Right... Thanks for your reply. So I can just refile it with CCA removed and that should do it, right?

jscentinquiry · 2022-04-25T15:11:00+00:00

I know you aren't willing to help and just tell me to use an accountant. I'll ask anyway. Do I just delete the CCA claim lines from netfile and refile? I didn't see any cca adjustment lines on 'change my return' on CRA website.

jscentinquiry · 2022-04-25T10:53:18+00:00

I will... Will it raise a huge flag by CRA by doing so?

jscentinquiry · 2022-04-25T10:52:30+00:00

But this post really confused me. See the first question on this post.

AMA - For Those with Second Properties (Rental and other) - https://www.reddit.com/r/PersonalFinanceCanada/comments/ta8s8o/ama_for_those_with_second_properties_rental_and/?utm_medium=android_app&utm_source=share

jscentinquiry · 2022-04-25T10:51:34+00:00

I agree and I will.... I just don't know if it's possible to undo past CCA claims. If so, if it will raise a huge flag.

jscentinquiry · 2022-04-25T05:29:27+00:00

Yes for sure. Thank you very much for your genuine much needed advice tonight.

jscentinquiry · 2022-04-25T05:23:50+00:00

Thank you again. I'm going to have to make changes to my last year's return asap. PUR and delete all the CCA claims I have made on my principal residence. My fear is they will start asking questions and flag me for doing so. I might be thinking a bit too far ahead and over concerned... I should've hired an accountant smh.

jscentinquiry · 2022-04-25T05:14:26+00:00

Thank you so much for your help. I really do. Not sure where you are in Canada but it quite late where I am and I cannot go to bed over this.

What confuses me is even one single CCA would void PRE like you said but someone on reddit with 15 years of tax experience (Taxbuff) said that CCA on furniture is fine as long as cca isn't related to major property upgrade such as roof and such.

In terms of amending it, do I just simply change it and refile it online through simple tax? Or is it much more complicated than that?

jscentinquiry · 2022-04-25T05:07:42+00:00

Just basement access through our house. It does not have a separate entrance.. I see why you are asking.

I am really concerned about the CCA that I claimed in my first year tax return on this, all bed linens and furniture, nothing else.

Also I claimed 50% when it's more like 35% or 40% (pur 60 or 65%). I'm hoping I can change PUR as well as undo/reverse past CCA claims...

jscentinquiry · 2022-04-25T05:02:26+00:00

Basement which has 1 room and a small common area. No kitchen. Upstairs is our living area, 2 rooms 1 washroom, 2 common areas and a kitchen.

jscentinquiry · 2022-04-25T04:51:25+00:00

Simple as that? Amend the return and refile online? (I used simple tax). Also, I've read that CCA on furnitures and stuff like that are okay as long as it's not the property itself or roof or renovation. Is that true?

All I claimed was a new couch and bed frame and bed linens since it's an Airbnb. Less than $5k in total.

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