Hosting & CRA Guidelines

As a Host on the K9 Off-Leash Network, you are part of Canada’s growing "sharing economy." While earning income from your property is rewarding, it also comes with specific responsibilities toward the Canada Revenue Agency (CRA).

At K9 Off-Leash Network, transparency and compliance are central to how we operate. This guide helps you understand the latest 2024/2025 reporting rules and how to stay organized for tax season.

Why This Matters: The New "Part XX" Rules

Effective January 1, 2024, the CRA implemented new "Reporting Rules for Digital Platform Operators" (known as Part XX of the Income Tax Act).

Under these rules, digital platforms like ours are required by law to collect and verify tax identification information from Hosts and report annual income directly to the CRA. This ensures that the platform economy remains fair and transparent for all Canadians.

Key Tax Obligations for Hosts

• Reporting Your Income: All income earned through the platform is taxable. Whether you are hosting as a side hobby or a full business, you must report this income on your annual tax return.
• Providing SIN/Business Numbers: To comply with the CRA’s new reporting requirements, we must collect your Social Insurance Number (SIN) if you are an individual, or your Business Number (BN) if you are registered as a business. This information is kept strictly secure and used only for mandatory tax filings.
• GST/HST Registration: Generally, if your total taxable sales (including dog park hosting and any other small business ventures) exceed $30,000 over four consecutive calendar quarters, you must register for and collect GST/HST.

Recommended Tax Forms

Most Hosts will report their income and expenses using one of the following:

• Form T2125 (Statement of Business or Professional Activities): Used if your hosting is considered a self-employed business.
• Form T776 (Statement of Real Estate Rentals): Used if your hosting is considered a basic rental of property without additional services.

Deductible Expenses: Lowering Your Tax Bill

One benefit of reporting your income is the ability to deduct "reasonable" expenses incurred to run your park. Keep all receipts for:

• Property Maintenance: Grass cutting, fencing repairs, and snow removal for the park area.
• Amenities: Poop bags, waste bins, water bowls, and toys.
• Marketing & Fees: Platform service fees and any personal advertising you do for your listing.
• Insurance: The portion of your homeowner's insurance rider or endorsement related to your hosting activities.

Pro Tip

The "Separate Bucket" Rule: To make tax time a breeze, open a separate bank account just for your K9 Off-Leash Network earnings and expenses. This "clean trail" makes it much easier to calculate your totals at the end of the year and provides clear documentation if the CRA ever asks for a review.

Disclaimer

The information provided in this article is for informational purposes only and does not constitute professional tax, legal, or accounting advice. Tax laws and CRA reporting requirements (including Part XX rules) are subject to change. We strongly recommend consulting with a qualified tax professional or accountant to ensure your specific situation is compliant with current Canadian tax laws.