Definition
Short-term rentals (STR) — less than 30 days — generate business income per CRA, not simple rental income. This has several implications:
**Taxation**: - Declared on T2125 (Statement of Business or Professional Activities), not T776 (rental) - GST/HST applicable if annual revenues exceed $30,000 - Accommodation and cleaning fees are deductible
**Mortgage qualification**: - A-lenders generally do not accept Airbnb income as qualifying income - Income varies greatly by season and local events → too volatile - Some B-lenders accept a 2-year average from T1/T2125
**Regulation in Quebec**: - Since 2020, all STRs must be registered with Corporation de l'industrie touristique du Québec (CITQ) - Municipalities (Montreal, Quebec City) have regulations limiting STRs in certain areas - Condominiums can prohibit STRs in their declaration of co-ownership