Pending federal tax reforms targeting Airbnb hosts encouraging, B.C. minister says
The crackdown on short-term rentals continues.
CTV News has learned the federal government will announce new tax reforms on Tuesday that target Airbnb and other short-term rental hosts.
Under pressure to increase long-term housing supply and ease the country's housing crisis, the government is set to alter tax rules to no longer allow short-term rental hosts to write off rental expenses in cities where restrictions are in place, including Vancouver.
For example, if a host makes $120,000 in income and has $120,000 in expenses, they'd have to pay $33,000 in federal taxes.
"Early indication is it sounds like a pretty good proposal that they're putting forward to help us not only in British Columbia, but really across the country to address this growing challenge," said B.C. Housing Minister Ravi Kahlon.
Last month, the province introduced new legislation to crack down on illegal operators.
"I feel as though it's low hanging fruit, a scapegoat," said Jordan Deyrmenjian, founder of Artin Properties.
Deyrmenjian's company manages over 150 short-term rentals in the Metro Vancouver area. He said he understands people's frustration with the housing market, but believes targeting short-term rental hosts is not the solution.
"I think it would be more worthwhile of the federal government, provincial government, all ranges of government just to commit to providing more supply of housing and also non-market housing,” he said.
In October, the province said there were around 28,000 short-term rental listings in B.C.
"When I look at what government’s doing, I don't think it's an attack on short-term rentals so much as saying let's try and put short-term rentals in its appropriate place, rather than allow the excesses that have occurred, particularly in metropolitan areas," said Tsur Somverville, a UBC professor who specializes in housing issues.
The federal tax reforms are expected to be in place Jan. 1, 2024.
CTVNews.ca Top Stories

CSIS whistleblower hopes they 'lit a match' with allegations of rape and harassment
A CSIS officer who is among a group of whistleblowers raising allegations of sexual assault and harassment in the spy agency's British Columbia office says she hopes their actions have 'lit a match' to change what she calls a 'dark and disturbing place.'
Blasted by Bloc, Conservative MP apologizes for asking minister to speak English
Conservative MP Rachael Thomas has apologized after drawing criticism from other members of Parliament for asking Heritage Minister Pascale St-Onge to answer questions in English at a committee meeting.
Jaw-dropping video shows collapse at Coquitlam, B.C., construction site
Emergency work is underway after a collapse at a Coquitlam, B.C., construction site that was caught on camera this week.
Canadian-owned mine will begin closure in Panama after contract deemed 'unconstitutional'
A Canadian mining company is expected to begin the process of closing its multibillion-dollar operations in Panama today after weeks of civil unrest and protests from civilians fearing the ecological repercussions of its open-pit copper mine that is twice the size of Manhattan.
Live updates Israel and Hamas trade blame for ceasefire's end as combat resumes
Israel resumed fighting in Gaza minutes after a temporary ceasefire deal ended, and accused Hamas of having violated the truce. Hamas blames Israel, saying it declined offers to free more hostages.
This year's Christmas tree selection could be sparse in some areas of the country
Families in search of a real Christmas tree this year better act fast or risk having nothing to put presents underneath.
DEVELOPING Statistics Canada to release November job report today
Statistics Canada is set to release its November labour force survey this morning.
NHL veteran Perry apologizes for 'inappropriate' behaviour, says he is seeking help
Corey Perry says he has started seeking help for his struggles with alcohol following his release from the NHL's Chicago Blackhawks.
These are the 5 headlines you should read this morning
A major breakthrough is made on the first day of COP28, former Chicago Blackhawks player Corey Perry apologizes and filmmakers in Bruce Peninsula 'accidentally' discover a 128-year-old shipwreck. Here's what you need to know to start your day.