Hi everyone I hope someone else has done one of these kinds of returns.
My client lives in Alberta, he rents out his car with a program called Turo. How do I treat this. Do I treat it like a business return? When anyone have any idea of what code I should use?
So I will have to claim the depreciation on this vehicle for sure?
So people just go on the website and pic his car and he drops it off to them and they send him an ETRSF
So he does UBER and now he is doing this. So that is like two business returns? or is thier something else I should be doing.
There are many factors to consider in claiming Peer-to-peer car-sharing income. Take a look at this document by Enst & Young LLP which addresses the many considerations on claiming this income in Canada:
One of the first things to figure out is if this income is to be claimed on the T776 (Rental Property) or on T2125 (Business Income). If the owner is renting many vehicles and offering multiple services with a clear objective of earning a profit, then it could very well be considered business income for the T2125. If it is just passive income from renting one vehicle, it is probably rental income on the T776.
You mentioned your owner is also an Uber driver. This implies that the owner probably has a GST tax number. Thus GST possibly needs to be considered in this operation too, especially if it is considered business income.
And, yes, it would be treated as a separate operation from the Uber business.
WOW you just opened up a whole can of problems I do not want to deal with. Thank you for your help and information. I will ask him to go see someone who is familiar with these kinds of returns. As I am not into doing complicated returns. I am just reading over his email and he and a friend purchased a car and they have someone managing the car for the TURO business. This sound to complicated for me. I only want to do basic tax returns I am not going to get into all of this.
Thank you so much for your help
He also told me he moved from Halifax to Edmonto for work and once conversation on the phone he told me that his work paid for the moving truck and now in his email he is saying he had to pay for everything himself and he is claiming the moving for him, his two kids and wife. They all flew and theyhired someone to drive their Uhaul.
I do not like to do tax returns for people if they say one thing to me and then another thing
just makes me mad
So the T776 automatically uses industry code 531111. So I am feeling maybe just do this as a rental as he and his partner (friend) only did this from July - Dec and they sold the car also last year (2024) So my client moved to Alberta from Halifax and Halifax is where they had the business.
So I guess I will look into doing his return as it is going to be an open and closed business for 6 months. I just do not want to do this return if he is going to be doing it each year.
any thoughts I am opened to listening
Thanks in advance for you help and thank you so much for the TURO file
