Car rental in Canada through Turo is the latest participant in the shared economy. Turo has just issued a press release that they are expanding operations throughout Canada. They have arranged for 2 large insurers to allow their customers to rent out their vehicles through Turo and still be covered for collision and liability. Like any other shared economy income source such as eBay, Uber or Airbnb, all income earned through these internet sources including Canadian Turo car rental income is fully taxable and has to be reported to CRA. CRA is focused on unreported income from the shared economy and recently went to court to force Uber to release information. There was also a recent joint press release from Airbnb and the province of Ontario reminding Airbnb renters of their tax filing obligations. Canadians who rent out their vehicles through Turo must report all income earned, no matter how sporadic or frequent their participation with Turo. Turo car renters should keep accurate logs of car rental use to be able to claim a pro rated portion of direct expenses such as maintenance or cleaning before a rental. Our experienced Toronto tax lawyers can provide tax help for shared economy income and expenses.
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."