Should Airbnb income be declared? The success of Airbnb
Airbnb has become a popular platform for property owners looking to rent their real estate, providing an alternative to traditional hotels. However, this raises questions about the tax and reporting obligations associated with renting on Airbnb in Quebec.
The answer is clear: yes, it is mandatory to declare Airbnb income in Quebec. According to the Agence du revenu du Québec (ARQ), anyone earning income must declare it, regardless of the source. Therefore, Airbnb hosts are required to report their income and pay associated taxes.
Procedure for declaring Airbnb income
But what is the procedure for declaring Airbnb income? First and foremost, it is important to understand the specific reporting obligations related to Airbnb rentals. As a property owner, you must include your Airbnb income in your annual tax return. You should also keep a record of all your expenses related to the rental, such as repairs, cleaning fees, and Airbnb commission fees.
Exemption cases
There are, however, exemption cases. If you rent out your primary residence on Airbnb for less than 15 days per year, you are exempt from the obligation to declare this income. However, this exemption does not apply to secondary residences, part-time rentals, or long-term rentals.
How to declare your Airbnb income?
Now that you know it is essential to declare your Airbnb income, let’s move on to how you can do it. The ARQ recommends using the “Mon dossier” service to access your online account and declare your income. You will need to fill out the relevant section of your tax return by providing the required information about your Airbnb income.
Consult an accountant or tax specialist
As for the most advantageous tax regime for Airbnb hosts, it will depend on your financial situation and other sources of income. It may be wise to consult an accountant or tax specialist for personalized advice on the most advantageous tax regime for you.
Finally, for property owners seeking a hassle-free real estate management experience, there is a simple way to find the ideal real estate broker. Just fill out the form below with your contact information and needs, and we will connect you with an experienced real estate broker in your area. Don’t let managing your Airbnb property become a chore—trust our brokers to help you effectively manage your real estate.
