You rent out your cottage in Lanaudière? Here's what you can actually deduct — with concrete figures.
February 2026
You own a cottage in Lanaudière — on a lakefront, in the mountains or in the forest — and you rent it to vacationers through Airbnb or your own network. Between cleaning fees, electricity, internet, maintenance and your own personal use, you're wondering: what can I really deduct?
The answer isn't complicated — but it does require a bit of organization. The key to remember: some expenses are 100% deductible (directly related to renters), while others must be prorated based on your rental usage ratio.
These are expenses you would not incur at all if the cottage were not rented out. They are 100% deductible without any proration.
These are expenses you pay regardless of whether the cottage is rented. You can only deduct the portion proportional to your rental use.
Recommended formula (precise method): Weeks rented ÷ (Weeks rented + Weeks of personal use) × annual expense
Rental ratio = 20 ÷ 52 = 38.5%. Here is a typical rental cottage in Lanaudière.
| Annual Expense | Total Amount | Deductible Portion (38.5%) |
|---|---|---|
| Mortgage interest | $14,400 | $5,544 |
| Property taxes | $4,200 | $1,617 |
| Home insurance | $2,800 | $1,078 |
| Electricity | $4,800 | $1,848 |
| Internet | $960 | $370 |
| General maintenance (lawn, snow removal) | $2,400 | $924 |
| SUBTOTAL (shared expenses) | $29,560 | $11,381 |
| Direct Expenses (100%) | Annual Amount | Deductible |
|---|---|---|
| Cleaning fees between stays | $5,400 | $5,400 |
| Airbnb commissions | $1,700 | $1,700 |
| Guest supplies | $600 | $600 |
| Pro photos + management software | $800 | $800 |
| SUBTOTAL (direct expenses) | $8,500 | $8,500 |
In addition to operating expenses, you can deduct a portion of your cottage's cost each year through the CCA (Capital Cost Allowance). It's optional — and not always advantageous.
💡 Example: Chalet (vacation rental property) total value $600,000, building value estimated at $420,000 (land excluded), rental use ratio 90%. CCA base = $420,000 × 90% = $378,000. First-year CCA = $378,000 × 4% × 50% = $7,560 in additional deductions.
if your cottage could one day qualify as your principal residence, claiming CCA may cause you to lose that designation for those years. The principal residence exemption can be worth far more than the annual tax savings from CCA — evaluate carefully with an accountant.
👉 For a full understanding of CAPEX, OPEX and CCA: CAPEX or OPEX: What's the difference for your cottage or plex?
Renting out a cottage in Lanaudière requires minimal organization to maximize your deductions. With a simple occupancy log and a well-maintained expense folder, tax season becomes much less stressful.
📌Concrete action: create an occupancy log today (days rented, personal days, maintenance days) and an expense folder.
Some expenses are 100% deductible (cleaning, Airbnb commissions, welcome supplies) — without proration.
Shared expenses (taxes, insurance, electricity) must be prorated according to your rental usage ratio.
CCA is optional — evaluate the impact at resale before claiming it.
Half-rate rule: in the first year, you can only claim 50% of the normal rate.
Keep all supporting documents for at least 6 years.
Q: How do I calculate my rental ratio if my cottage is closed for part of the year?
A: The most accurate method: weeks rented ÷ (weeks rented + weeks of personal use). Weeks of closure don't count. E.g.: 20 weeks rented + 8 personal weeks = 71.4% ratio. Your accountant can help you choose the most favourable method for your situation.
Q: Can I deduct the cleaning I do myself between stays?
A: No. Only amounts actually paid to a third party are deductible. If you hire someone to clean, those fees are 100% deductible.
Q: Do I need to depreciate my cottage furniture?
A: Yes, if you purchased it for rental purposes. Furniture falls under Class 8 (20%/year). With the half-rate rule, you deduct 10% of cost in the first year.
Q: What happens if I sell my cottage after claiming CCA?
A: The CRA recovers the deductions through recapture of depreciation, taxed as ordinary income (100%). Plan your sale with an accountant to minimize the tax impact.
