Motorohome Investment Plan

Your MotorHome will be professionally managed and marketed by an established Canadian company, Toronto Camping Centre.

As the owner of a specific MotorHome, there are no restrictions on personal use. You can enjoy your holidays with your family and friends at a leisurely pace and visit points of interest throughout North America. Toronto Camping Centre acts as your MotorHome manager in that we promote, maintain, clean and report all aspects of the use of your MotorHome directly to you. You simply call us and request that your Recreational Vehicle (RV) be ready for the dates reserved, and we treat you just as you are... the owner!

Toronto Camping Centre's experience with renting our Motor Homes makes this all possible, and what's more, all your rental income is earned tax free! You pay no 8% Provincial Sales Tax on purchase, and the 5% G.S.T. is refunded to you as an input tax credit.

Our Factory trained and licensed RV technicians will perform all required maintenance at our state of the art service facility, and our top-notch housekeeping staff will keep your new RV sparkling clean.

If the idea of letting a few rental clients pay the majority of your annual costs of owning appeals to you simply ask one of our Sales Representatives for more information.

Owner Use
The owner can reserve the use of their MotorHome in any season, however, use in High or Mid season will reduce the Rental income proportionately.

Income Tax Consideration
Normally, Rental income is added to taxable income, however, RV owners are permitted to reduce taxable Rental income down to zero by the use of depreciation. This depreciation is calculated at 30% per annum on a declining balance, with 15% allowed in the year of acquisition. Your net result is that all Rental income is free from income tax after allowing for deductible expenses such as depreciation, maintenance, insurance, loan interest and license fees.

PST and GST
The 8% Provincial tax is not charged on the purchase of an RV when a 'Management Agreement' is signed, as it will be paid by the renters. Toronto Camping Centre will collect and remit sales tax to the Treasurer of Ontario on your behalf. You will pay the 5% GST on your purchase and then register for a GST number. On your first tax return, you will show the amount paid on purchase and it will be refunded to you as an Input Tax Credit. The owner is required to remit GST to Revenue Canada.

Operational Responsibilities
For our fee of 40% of the daily rate, including mileage and generator use (if equipped), Toronto Camping Centre is responsible for marketing to the general public, as well as movie production companies, and tour operators using various media. We are also responsible for invoicing, receivable collections, billings, and providing customer contracts using our reservations system. As well, we provide demonstrations on the use of a Motor Home to our Rental clients. In addition, our professional service and maintenance staff complete a thorough vehicle check-in and out and cleaning of your RV advertising, providing replacement parts and accessories, and assisting renters with any on-road concerns.

Owner Responsibilities
As the owner of the unit, you will invoice Toronto Camping Centre (TCC) for 60% of the daily/kilometer/generator rate collected (calculations and an invoice will be supplied by TCC) plus applicable GST. Following the transaction, TCC will pay the owner quarterly, in March, June, September and December. You are responsible for any bank payments if the RV is financed, license plates, renewal fees and insurance.

Repairs and Maintenance
The cost of maintenance and repairs is deducted from income, however, the RV is covered by a manufacturers 3 year/60,000 km warranty, during which TCC will arange for any warranty repairs that are required. Most owners purchase optional full-coverage warranty which will protect your investment up to 7 years or 120,000 kms. Of course, any damage caused by renters will be repaired by TCC and billed directly to their insurance company, with the renter being fully responsible for the deductible portion, not the owner of the MotorHome.

Example:
A typical unit purchased for Rental use:

2008 Impulse 31C (sleeps 6-8)