{"id":4383,"date":"2025-03-20T20:33:47","date_gmt":"2025-03-21T00:33:47","guid":{"rendered":"https:\/\/amyotgelinas.com\/short-term-leasing-beware-of-compliance\/"},"modified":"2025-03-20T20:33:47","modified_gmt":"2025-03-21T00:33:47","slug":"short-term-leasing-beware-of-compliance","status":"publish","type":"post","link":"https:\/\/amyotgelinas.com\/en\/short-term-leasing-beware-of-compliance\/","title":{"rendered":"Short-term leasing &#8211; Beware of compliance!"},"content":{"rendered":"<p>Since January<sup>1,<\/sup> 2024, a measure has been in place to disallow expenses incurred (including interest charges) to earn income from short-term rentals if these are deemed to be non-conforming. The aim of this measure is to encourage the long-term rental of residential properties in order to alleviate the current housing crisis. <\/p>\n<p>Statistically, as of March 14, 2025, nearly <a href=\"https:\/\/citq.qc.ca\/fr\/statistiques_11.php\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">3,000 tourist homes<\/a> in the Laurentians were registered with the CITQ (Corporation de l&#8217;industrie touristique du Qu\u00e9bec), for a total of nearly 14,000 homes in the Province of Quebec.<\/p>\n<h3><strong>Short-term leasing compliance<\/strong><\/h3>\n<p>For the purposes of federal tax legislation, short-term rental means &#8220;for a period of less than 90 days&#8221; and is considered non-conforming when the residential property leased :<\/p>\n<ul>\n<li>is located in a province or municipality that does not permit the operation of a short-term rental at that location;<\/li>\n<li>does not comply with all provincial or municipal registration, licensing and permit requirements for rental operations<\/li>\n<\/ul>\n<p>For the purposes of Quebec tax legislation, short-term rental means &#8220;for a period of 31 days or less&#8221; and is considered non-compliant when the residential property rented does not meet the registration requirements set out in the <em>Tourist Accommodation Act and the Regulation respecting tourist accommodation.<\/em><\/p>\n<h3><strong>Deductible expenses<\/strong><\/h3>\n<p>The building must comply with federal and Quebec tax legislation to qualify for the full amount of rental expenses.<\/p>\n<p>Disallowed expenses are calculated on the basis of the number of days in the year the property is a non-conforming short-term rental out of the total number of days the property is a short-term rental.<\/p>\n<h3><strong>Accounting records<\/strong><\/h3>\n<p>It is essential to keep accurate and up-to-date accounting records that include the following information:<\/p>\n<ul>\n<li>The number of days during the year that the short-term rental is non-compliant;<\/li>\n<li>The number of days during the year that the property is a short-term rental (conforming or non-conforming);<\/li>\n<li>Total short-term rental expenses (conforming or non-conforming).<\/li>\n<\/ul>\n<h3><strong>Important<\/strong><\/h3>\n<p>If you&#8217;re in the short-term rental business, it&#8217;s<strong> important to check with the municipality where the property is located to ensure that you meet all municipal and provincial requirements, and to obtain all necessary permits. <\/strong>You must also be registered for <a href=\"https:\/\/www.revenuquebec.ca\/fr\/citoyens\/votre-situation\/hebergement-de-courte-duree\/etape-2-vous-inscrire-au-fichier-de-la-taxe-sur-lhebergement\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">lodging tax<\/a>, <a href=\"https:\/\/www.revenuquebec.ca\/fr\/citoyens\/votre-situation\/hebergement-de-courte-duree\/etape-3-vous-inscrire-aux-fichiers-de-la-tps-et-de-la-tvq\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">GST and QST<\/a>.<\/p>\n<p><a href=\"https:\/\/amyotgelinas.com\/services\/services-aux-entreprises-privees\/fiscalite\/\">Members of the tax team<\/a> are available to help you comply with tax requirements.<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>To continue reading :<\/strong><\/h3>\n<ul>\n<li><a href=\"https:\/\/citq.qc.ca\/fr\/index.php\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">CITQ &#8211; Tourist Lodging Registration<\/a>: In Quebec, the Tourist Lodging Act and Regulations stipulate that it is mandatory to hold a registration number when offering lodging to tourists for periods not exceeding 31 days.<\/li>\n<li><a href=\"https:\/\/amyotgelinas.com\/location-chalet-regles-fiscales\/\">Are you renting out your chalet, or looking to buy a vacation property? Beware of tax rules! &#8211; Amyot G\u00e9linas<\/a><\/li>\n<li><a href=\"https:\/\/www.revenuquebec.ca\/fr\/citoyens\/votre-situation\/hebergement-de-courte-duree\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Short-term accommodation | Revenu Qu\u00e9bec<\/a><\/li>\n<li><a href=\"https:\/\/www.canada.ca\/fr\/agence-revenu\/nouvelles\/salle-presse\/conseils-fiscaux\/conseils-fiscaux-2025\/modification-regles-concernant-deductions-admissibles-relatives-revenu-location-court-terme.html\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Changes to rules regarding allowable deductions on short-term rental income &#8211; Canada.ca<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Since January1, 2024, a measure has been in place to disallow expenses incurred (including interest charges) to earn income from short-term rentals if these are deemed to be non-conforming. The aim of this measure is to encourage the long-term rental of residential properties in order to alleviate the current housing crisis. Statistically, as of March [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4384,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[132,134,136,142,131],"tags":[],"class_list":["post-4383","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-management","category-did-you-know-that","category-personal-finances","category-tax","category-taxation"],"acf":[],"_links":{"self":[{"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/posts\/4383","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/comments?post=4383"}],"version-history":[{"count":0,"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/posts\/4383\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/media\/4384"}],"wp:attachment":[{"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/media?parent=4383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/categories?post=4383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amyotgelinas.com\/en\/wp-json\/wp\/v2\/tags?post=4383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}