Are You Aware Of The Tax Implications of Owning a Cabin or Second Residence? An informational read from your friendly small business accountant
Posted On: 21/11/17 - 0
A cabin, or second home, is considered a personal property if it is used primarily for the personal use or enjoyment of;
* the taxpayer,…
* Family members of the taxpayer
* where the taxpayer is a trust, a beneficiary under that trust or any person related to the beneficiary
If you happen to move into the cabin full time, no tax will be payable as a result of this move. However, if the use of the property changes from personal use to being used for the purpose of gaining an income, such as a rental property, then the CRA would consider this a deemed change from personal usage to a source of income, that would change your tax situation.
For additional tax implication information on this or any other tax topic, please free to contact us for a complimentary consultation.