Tour Ontario and reap the benefits with the Ontario Staycation Tax Credit! This provincial government initiative is designed to encourage Ontarians to explore their backyard and support local tourism. By doing so, you could receive up to a 20% reimbursement on eligible expenses related to overnight stays and accommodations. Not only does this promote local adventures, but it also provides a much-needed boost to our local economy and helps the tourism industry recover from the global pandemic’s impact.
Who Qualifies for the Ontario Staycation Tax Credit?
To be eligible for this tax incentive, you must fulfill the following requirements:
- Be a resident of Ontario for the tax year in which you’re claiming the credit.
- Have eligible accommodation expenses such as hotels, motels, lodges, campsites, or short-term rentals.
- Maintain receipts and records of your expenses.
- The expenses must be paid by you, your spouse or common-law partner, or your eligible child, as detailed on the receipt provided by a GST/HST-registered supplier.
What Expenses Can Be Claimed?
Provided all other conditions are met, you can claim expenses related to:
- Accommodation for a single trip or multiple trips, up to a maximum limit of $1,000 as an individual or $2,000 as a family.
- Accommodations booked either directly with the provider or through an online platform.
- The necessary portion of the expense to access the accommodation.
- The accommodation segment of a tour package expense.
Keeping Track of Eligible Expenses
To successfully claim the credit, ensure you keep detailed receipts for any eligible expenses. These receipts must include:
- The location of the accommodation.
- The reasonable amount for the accommodation portion of a stay.
- The amount of any GST/HST paid.
- The date of the stay.
- The name of the payor.
Conclusion
Exploring Ontario has never been so rewarding! With the Ontario Staycation Tax Credit, you can discover local gems while contributing to the province’s economy. Just ensure to keep track of your expenses and meet the necessary requirements to claim your tax credit successfully.
Need help with your tax planning and want to maximize your tax credits? Contact the expert accounting team at Rodina Professional Corporation today for a consultation!
