Home Office Expense Deduction

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home-office-expenseIf you are looking to deduct home office expenses, the following Home Office Expense Deduction Check List will help guide you as to what can be expensed on your income tax.

  • Principal (>50%) place of employment, i.e., at least 50% of duties of employment are performed at home, OR
  • Home space is used exclusively for the purpose of earning employment income & meeting customers or other persons on a regular or continuous basis in the ordinary course of employment.
  • Can deduct expenses (e.g., rent: pro-rated on a sq. meter area, fuel, electricity, supplies) up to the income generated from “home”. Excess expenses can be carried forward indefinitely.
  • Salaried employees cannot claim CCA, property taxes, insurance payments or mortgage interest. However, if the taxpayer has earned commission income, then property taxes and insurance payments are deductible.
  • Mortgage interest and CCA are only deductible by a self- employed individual against business income.

For more information, please contact me for a free consultation.

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Category: Business Tax Tips

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