A setback for those who rent houses, they will have to pay additional tax when they sell

 

 

13% HST will now be payable on short-term rental properties for sale. This important ruling was issued by the Tax Court of Canada. This tax applies to any residence that is regularly rented out short-term on sites like Airbnb and Vrbo. The court's ruling is in a case filed by a condo owner in Ottawa

This tax is levied on the total cost of the house. With this, the homeowners will have to pay tens of thousands of dollars in taxes. Residential home sales are generally exempt from HST. So the new ruling will affect people who buy houses as an investment and rent them out for short periods.