I just started an AirBnB I own personally but am incorporated

[tristangemus]

Hello!

I have recently started an AirBnB business. I am starting it with my condo I own personally. I have recently incorporated and have been collecting through there to date.

I spoke to a CPA and he mentioned I may need to transfer the asset, which will trigger land transfer tax which I just paid two months ago, which isn’t good.

I figured I could rent it to my corp and collect exactly as much as my costs would be which I think I would be able to write off personally? I’m not looking to take profits out of the business.

Does this seem feasible? Are there negative implications to this?

I’m happy to pay any experts to help me set this up, too.

 

[scylla]

Hello!

I have recently started an AirBnB business. I am starting it with my condo I own personally. I have recently incorporated and have been collecting through there to date.

I spoke to a CPA and he mentioned I may need to transfer the asset, which will trigger land transfer tax which I just paid two months ago, which isn’t good.

I figured I could rent it to my corp and collect exactly as much as my costs would be which I think I would be able to write off personally? I’m not looking to take profits out of the business.

Does this seem feasible? Are there negative implications to this?

I’m happy to pay any experts to help me set this up, too.

This is an immigration forum and the expertise here is around immigration programs and requirements. You'd be better off finding a forum that deals specifically with questions around managing AirBnbs in Canada.

 

[tristangemus]

I’d like to believe our tax experts here have some insight. It is the 2nd result on Google for “canada tax forum” after all

This is an immigration forum and the expertise here is around immigration programs and requirements. You'd be better off finding a forum that deals specifically with questions around managing AirBnbs in Canada.

 

[Copingwithlife]

Hello!

I have recently started an AirBnB business. I am starting it with my condo I own personally. I have recently incorporated and have been collecting through there to date.

I spoke to a CPA and he mentioned I may need to transfer the asset, which will trigger land transfer tax which I just paid two months ago, which isn’t good.

I figured I could rent it to my corp and collect exactly as much as my costs would be which I think I would be able to write off personally? I’m not looking to take profits out of the business.

Does this seem feasible? Are there negative implications to this?

I’m happy to pay any experts to help me set this up, too.

You stated you’ve already asked a CPA questions.
Asked them this. The CPA is an “expert “
You’re talking about aggressive tax planning .


……and that’s dangerous

 

[tristangemus]

You stated you’ve already asked a CPA questions.
Asked them this

real great forum full of helpful ppl

 

[scylla]

I’d like to believe our tax experts here have some insight. It is the 2nd result on Google for “canada tax forum” after all

Hmmm... I'm surprised this forum the second hit for that search. Anything beyond a simple tax question here largely goes unanswered. But maybe you'll get lucky. Have you tried the airbnb forums? If not, I think it would be worth posting there: https://community.withairbnb.com/t5/Community-Center/ct-p/community-center

 

[foodie69]

real great forum full of helpful ppl

This forum is about immigration to Canada and not some tax scheme issue for an AirBnB. Keep hassling your CPA for best results..

 

[tristangemus]

This forum is about immigration to Canada and not some tax scheme issue for an AirBnB. Keep hassling your CPA for best results..

is there an echo in here?

 

[Naturgrl]

is there an echo in here?

Yes. This is not a tax forum.

 

[tristangemus]

Yes. This is not a tax forum.

weird, just hired an accountant who DMd me, cheers.

 

[mojavehunter]

I’ve heard of folks who rent their places to their own corporations to cover costs and try to write things off, but you’ve got to be careful with the tax stuff. It can get a little tricky, especially with land transfer taxes. Getting some advice from a CPA who knows the real estate ropes could save you headaches down the line.

And about those Airbnb management fees, they can actually be pretty helpful in taking care of the nitty-gritty stuff, leaving you with more time to focus on the big picture. It's great you’re thinking about this early on. Finding someone who can set you up properly might be worth it, even if there’s a small cost upfront.