Canada’s New Tax Rule Curbs Airbnb Deductions to Address Housing Shortage
Photo Credit: South Africa's Ministry of Tourism and Airbnb have announced a partnership to regulate the country's short-term rental industry. Source: Airbnb https://www.airbnb.com / Airbnb
Skift Take
Is the measure enough to address the housing shortage? Airbnb argues that it only benefits the economy and empowers locals
Canada introduced tax measures on Tuesday to ease a severe rental housing shortage by limiting income tax deductions on short-term rentals on services such as Airbnb Inc and Vrbo, joining many countries that are enacting similar laws.
The new rules apply as of Jan. 1 in provinces and municipalities that bar short-term rentals, and affect deductions such as interest expenses, the federal government said in its fall economic statement.
In Montréal, Toronto and Vancouver alone, an estimated 18,900 homes were being used as short-term rental properties in 2020, the report
