Tax wiki
s. 67.7

PART I — Income Tax · DIVISION B — Computation of Income · SUBDIVISION F — Rules Relating to Computation of Income

Definitions

Not yet annotated · Text current to 2026-06-21 · section last amended 2024-06-20

Current text

(1)

The following definitions apply in this section.

non-compliant amount, for a taxation year, means the amount determined by the formula

A × B ÷ C

where

is the total of all amounts that would, if subsection (2) did not apply, be deductible in computing income in the taxation year in respect of the use of a residential property as a short-term rental in the taxation year;

is the number of days in the taxation year that the residential property was a non-compliant short-term rental; and

is the number of days in the taxation year that the residential property was a short-term rental. (montant non conforme)

non-compliant short-term rental means, at any time, a short-term rental that is located in a province or municipality that, at that time,

(a)

does not permit the operation of the short-term rental at the location of the short-term rental; or

(b)

requires registration, a licence or a permit to operate the short-term rental, and the short-term rental does not comply with all applicable registration, licensing and permit requirements. (location à court terme non conforme)

residential property means all or any part of a house, apartment, condominium unit, cottage, mobile home, trailer, houseboat or other property, located in Canada, the use of which is permitted for residential purposes under applicable law. (bien résidentiel)

short-term rental means a residential property that is rented or offered for rent for a period of less than 90 consecutive days. (location à court terme)

Non-deductibility of expenses — short-term rental

(2)

Notwithstanding any other provision of this Act, no amount is deductible in computing income in respect of a short-term rental for a taxation year, to the extent the amount is a non-compliant amount for the taxation year.

Deemed compliance

(3)

For the purposes of subsection (1), a short-term rental of a person or partnership is deemed not to be a non-compliant short-term rental for the 2024 taxation year of the person or partnership if

(a)

the short-term rental is located in a province or municipality that requires registration, a licence or a permit to operate as a short-term rental; and

(b)

the short-term rental complies with all applicable registration, licensing and permit requirements by December 31, 2024.

Reassessments

(4)

Notwithstanding subsections 152(4) to (5), the Minister may make any assessments, reassessments and additional assessments of tax, interest and penalties and any determinations and redeterminations that are necessary to give effect to subsection (2) for any taxation year.

Source: Justice Laws Website. Not an official version.

Historic text

This section has not been amended since it was enacted (2024, c. 17, s. 16), so there is no earlier version.

Earlier versions: Justice Laws point-in-time versions of the Act (from 31 August 2004), and CanLII (under “Versions”). On Justice Laws, each version of section 67.7 links to the one before it.

Enacting and amending legislation

2024, c. 17, s. 16

Text before 2004 is found in the annual Statutes of Canada cited above. Application and coming-into-force provisions are not part of the consolidation; see the amending Acts.

Cross-references

This section refers to

s. 152

Referred to in

s. 215

References are generated from the statutory text and list other sections of the Act only.

Citation

Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 67.7.