CRA Appeals Service Header Image — Gateway Surrey

New GST Exemptions And Short-Term Rental Deductions Coming in 2024. Get Prepared Now

January 15, 2024 Andrew AdolphAudits

Tax laws are constantly evolving, and staying informed is crucial for individuals and businesses to stay ahead of them. In 2024, new GST exemptions and changes to short-term rental deductions will come into effect, impacting various sectors. 


Let’s break down these changes and understand how they may affect you.

What Happens If You File Taxes Late In 2023 21

Enhanced GST Exemptions: Mental Health Services and Rental Housing


In a major win for mental health services, professional counselors and psychotherapists will now enjoy significant GST exemptions. These GST exemptions aim to make crucial services more affordable and accessible to those in need.


Developers in the construction sector will benefit from an exemption for newly built rental housing with four or more units. This change will encourage the creation of more rental units, potentially easing the housing shortage in many areas. 


It’s important to note that this exemption applies to new construction only and has an expiration date in 2030. 


The exemption will not apply in the case of substantial renovation, in order to avoid renovictions.

Short-Term Rentals: Government Crackdown

The government has made its stance clear: they are not fond of short-term rentals like Airbnb. To curb their growing popularity and address housing concerns, the government will restrict the deductibility of certain expenses related to operating these properties. 


By doing so, they hope to encourage property owners to shift their focus towards long-term rentals, ensuring more units are available for those seeking permanent housing. 


Owners of short-term rental accommodation who do not comply with all provincial and municipal statutes will be denied the ability to deduct their operating expenses against income. There will be increased enforcement of these rules, and collaboration between municipal, provincial, and federal governments will ramp up, leading to potentially significant changes in the housing market.


The changes in taxation this year track two of our nation’s most pressing issues: housing affordability and mental health treatment. Sometimes government intervention has unforeseen consequences, usually bad. All we can do is know the changes and evolve with them. Make sure to visit the CRA website often to stay up to date on tax law updates.

Get Expert Assistance: Navigate the Changes with Confidence


Understanding and adapting to these tax law changes can be overwhelming. As a former CRA auditor, I offer my expertise to guide you through these changes effectively. 


For more information, check out my blog or book a free consultation today, and together we can tailor solutions to your specific situation.

Book Free Consultation

Andrew Adolph

Andrew Adolph is a CPA and former CRA auditor with 25 Years of experience. He helps businesses to not par any more in sales taxs than the law says they must and acts as an advocate for you if you are being audited, so you can fous on your business.