The gig economy is alive and well in Toronto. Whether it’s driving for a rideshare company, delivering food or renting out all or part of your home on Airbnb, according to a Toronto Star article, 1 out of 10 Toronto workers is part of the gig economy, which means there are a lot of people generating income from these jobs. Whether it’s part-time or full-time, these jobs can no longer be considered a side hustle that the CRA doesn’t need to know about.
And it may not be enough to start declaring income starting now. The CRA can ask about tax returns dating back three years, which is about the start of the gig economy.
You may think the CRA has no way of finding out how much you’re earning from that basement suite or investment condo that’s on Airbnb, but it will reach out to these larger companies for a list of people who have earned more than a certain amount in a calendar year. The CRA did this with eBay a number of years ago and I wouldn’t be surprised if it gets a subpoena for companies like Uber and Airbnb that show who received more than $10,000 in a year.
The easy way to deal with this is to be honest. Keep track of your income from your side hustle. If you rent out on Airbnb, you’ll also be able to deduct expenses like the extra utilities, etc. If you have any questions about this or you know someone who’s driving for Lyft, please forward this to them.