If you rent out a property seasonally (like a cottage, vacation home, or Airbnb listing), this CRA rule may apply to you: you must report all rental income to the Canada Revenue Agency, even if you only rent for part of the year. Seasonal rentals are treated the same as year-round rentals for tax purposes. You can deduct eligible expenses against that income, such as property taxes, mortgage interest, utilities, repairs, and advertising costs. The key difference with seasonal properties is timing: your income and expenses don't spread evenly across 12 months, so you need to track them carefully by season and file them correctly on your tax return. Seasonal rental properties present unique tax planning opportunities and complications. Your income arrives in concentrated blocks (summer months, ski season, or holiday periods), which can push you into a higher tax bracket for that year. Meanwhile, your expenses may spread across the full 12 months (property insurance, taxes, and maintenance happen year-round), even when you're earning no rental income. Many Canadian property owners miss deductions because they only think about expenses during the rental season.
Yes. The CRA requires you to report all rental income, regardless of how many months you rent the property. Even if you rent only during summer or ski season, that income must be reported on Form T776 in the year you receive it.
Yes, this CRA rule may apply to you. You can deduct all expenses incurred to earn rental income throughout the full calendar year, including property taxes, insurance, and maintenance, even if the property sits empty in the off-season.
You can only deduct the mortgage interest portion, not the principal. The interest you pay on borrowed money used to purchase rental property is a deductible expense, but principal repayment is not. Your mortgage statement will show the split between interest and principal.
If you rent to family members at below market rates (or for free), the CRA may not accept it as a rental property for tax purposes. You should charge fair market rent and maintain all documentation to prove the property was genuinely offered for commercial rent.
Absolutely. You must keep a calendar showing which days you used the property personally and which days guests rented it. This affects how you calculate deductible expenses proportionally. The CRA expects clear documentation if they audit your return.