In the ever-evolving landscape of the sharing economy, Airbnb has emerged as a popular platform for property owners to earn additional income. However, with this new revenue stream comes the crucial question for Airbnb hosts: Is the income generated from Airbnb considered business income or property income for tax purposes? This distinction is critical, as...
Investing in real estate offers numerous opportunities for profit, especially through house flipping. However, understanding the complex tax implications associated with this activity is crucial. Understanding the Principal Residence Exemption (PRE) A common misconception is that selling a “principal residence” is exempt from income tax. The reality is more nuanced, with specific conditions that need...
In the intricate world of international taxation, Canadian taxpayers with global interests often find themselves at the crossroads of domestic tax compliance and international investment opportunities. A critical aspect of this landscape is understanding the Foreign Accrual Property Income (FAPI) tax rule, a cornerstone of Canadian tax regulation designed to curb tax avoidance through Controlled...