Alberta Related Messages for Hosts (Edmonton and Calgary)

[Dave-and-Deb0]

Since there are no communities setup yet for Edmonton and Calgary, feel free to post your comments, questions and stories here.

[Kelsey1]

Hello Edmonton and Calgary AirBnB hosts. I have a question about Taxes. What do you report to CRA? What do you use as documentation to report to CRA? And where on your taxes do you report it? In addition, do we have to get a small business licence. I am new to reporting, and although Airbnb does not report to CRA, I am being told by everyone that I speak with, that I should indeed report my income from this, the question I have is how and where? And are there any legalities that I am missing looking into (eg local laws?) As far as I have read, only Quebec has very odd rules about AirBnb hosting. 

Until I have some more answers, I have put my hosting on hold.

Many thanks in advance,

Kelsey

[Dave-and-Deb0]

Hi @Kelsey1,

This is the first year we will be reporting to CRA in regards to Airbnb but we plan to report it the same way we have reported this property when we had long term tenants.  You need to keep track of your rents and your expenses.  There are also a lot of expenses you can write off.  You will need to complete a T776 which is not too complicated.  This is how we have reported in the past and plan to continue reporting.  Below is the link to the Pdf regarding Real Estate Rentals.

http://www.cra-arc.gc.ca/E/pub/tg/t4036/t4036-14e.pdf

[Kelsey1]

Thank you for the form Dave and Deb, it looks long and very complicated. Do you have an accountant help you with this? Unfortunately I was unaware that I could expense things such as buying food and bathroom products for my guests. So although I kept track of my income, I did a poor job of keeping track of expenses. I am sure I am not alone. How do you figure out a fair expense percentage of your heat/electricity/food/water/internet costs to write off? Even if you did keep track, these things are to measure, just wondering how you do this without a good accountant.

Kelsey

[Dave-and-Deb0]

Hi @Kelsey1,

I came across this article today:http://www.airbnbtips.com/legal/canadian-airbnb-taxes-income-guide/

Dave

[Danny0]

Perhaps to clarify the tax question: you have th eoption of reporting your income and expenses on the T7776 (Rental Income form) OR the T2125 (business Expenses form). The T2125 form gives you wider latitude for expense deductions such as food, linens, wine, flowers, etc, which the T776 does not allow. If you choose the T2125 and earn over $30,000 annually you MUST register for and collect HST.

AirBnB provides a spreadsheet of all your earniomngs on your dashboard, use that to compute your earnomngs. Make sure it includes the 3% AirBnB charges, then deduct that as an expense.

[Sunny-and-Tory0]

Slowdown in Edmonton area?

We used to book 2 months in advance and were pleasantly surprised with how busy winter was in Edmonton.

But things seem to have changed in Edmonton - or maybe I'm being impatient?

2016 seems to be slower than last year and yes the economy isn't what it was, but we are renting our our 2 places in the $70 range which is significatnly cheaper than hotels.

Anyone else noticing a change with their bookings?

Thanks.

[Dave-and-Deb0]

Hi @Sunny-and-Tory0,

I was actually going to post the same thing over on the Alberta Facebook page.  I have found the same thing as you.  A lot of people all over the world have been complaining about the slowdown and I was feeling pretty good over November and December but it has become very slow.  I received my first enquiry in a while today but she wants a discount.  I have already removed my cleaning fee to make my listing cheaper and I would rather have it empty than lower my rate further.  Let's hope it picks up soon.

Happy hosting!

Dave 

[Sunny-and-Tory0]

@Dave-and-Deb0

Thanks for your feedback.

I was worried it was "just us" since we made a number of changes since we got more reviews (increased to strict and increased cleaning fees).

We are back down to moderate and may have to take a look at our cleaning fee as well which is a shame - we love including a lot of treats and bonuses to our guests and would hate to cut that program back.

Up until now, we felt Airbnb was a hedge against the conventional rental market since we were more comprabale to the hotel market, but if this keeps up, we might have to look at a conventional rental.

It's weird to hear that the slowdown is with Airbnb systemically, rather than markets which are struggling...makes me feel a little better...barely.

Stay in touch!

[Alison9]

Hi All,

I saw a thread at one point about cleaning services in Edmonton, and I can't find it anymore. Does anyone have any suggestions?

Thanks,

-Ali

[Lana71]

Hi Alison.  Did you have any luck with a cleaning service?  The one I found is driving me crazy!  I'm looking for another one.

[Nilufer-and-Enayatullah0]

Hi Lana,

I would recommend TAG cleaning Services.  Triple w dot tagcleaning dot ca give them a try 

[Nilufer-and-Enayatullah0]

Hi Alison,

I would recommend TAG cleaning Services.  Triple w dot tagcleaning dot ca give them a try 

[Maria882]

Hi Guys, 

Host from Calgary here! Available to help Co-Host if any others need the assistance in turning over your place. I know just what needs to be done as I do it for my places too!  (Includes thorough cleaning 🙂 

Let me know! 

[Mouhamadou0]

Hi,

My name is Mouhamadou and since I joined Airbnb here in Edmonton, I would like to know if there are compliance requirements to meet wih the city like a permit or some fees to pay before becoming Host. Also with CRA, is it possible to clarify how to report?

Thank you in advance.