If you are, keep reading!
As your trusted service provider, we thought it would be helpful to provide a quick guide on where you can find what you need for your 2021 personal income tax return. Remember, you need to pay your taxes by April 30, 2022, yet your actual filing date is determined by your personal circumstances: check out the CRA website for those details. So, without further delay, here’s a list of places you can go to find what you need.
- Determining your Revenue. If you have a dedicated bank account for your rental income the easiest way to determine your revenue is to add up all the deposits for this tax year. Yet, if you don’t have a separate bank you will need to pull reports from your Airbnb and stripe accounts if applicable. (If you don’t have access to these, please email us.)
- Determining your expenses. Go look for the email we sent back in January: here you’ll find links to your Beyondbnb invoices for the tax year. You’ll also need to gather your expense receipts from the past year (related to your short-term rental of course!). Remember from our last email that there are expenses you can and cannot claim. Whatever you do, just make sure you claim what you’re entitled to!
Once you have all the above information, you then need to calculate a series of subtotals for your tax return. You will probably need:
- Total income: total of the money you have received from guests.
- Total expenses: these include our management fees, laundry, and other expenses you have incurred.
- If applicable to your circumstances, you need to calculate the total Capital Cost Allowance (CCA) for all your depreciable property. If you’re stuck on how to calculate this, please use the link at the foot of this email for more information.
- Finally, if you collect and remit GST/PST/MRDT you will need this information too. Your total PST and MRDT paid can be found in your e-tax BC returns, and for GST, you can find this in your GST returns.
And voila, you should now have nearly all the information that relates to your short-term rental income.
Need some more help?
- The CRA has a form (T776) that can help you calculate your rental income and expenses for income tax purposes.
- We have also stumbled across this rather comprehensive CRA document that is dedicated towards calculating rental income, click here. Just look through the table of contents to help find the answers to anything you are unsure about. Please note, if your rental operation is a business, do not use this guide, instead find guide T4002 on the CRA website.
As mentioned in our last email, we are not tax specialists so we always recommend that you seek professional tax advice if you are unsure about anything.
No Comments Yet
Let us know what you think