Home Office Expenses

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- Please note: requires Microsoft word.

You can deduct expenses for the business use of a workspace in your home, if you meet one of the following conditions:

    • The office is your principle place of business
    • You use the space only to earn your business income, and you use it on a regular and ongoing basis to meet your clients or customers

  • Your calculation should be on a reasonable basis, such as the area of the workspace divided by the total area of your home.
  • The business-use-of-home expenses cannot be more than your net income from the business before you deduct these expenses.
  • You can carry-forward your unused business-use-of-home expenses to the next fiscal period
 
Expenses that can be deducted:
  • Utilities (gas, electricity, water, etc.) with the exception of your personal telephone line. Only a separate line strictly for business can be deducted.
  • Home Insurance *
  • Cleaning Materials
  • Property Taxes *
  • Mortgage Interest *
  • Capital Cost Allowance **
  • Maintenance and Repairs - minor repairs to the home can be deducted although there is no deduction for the value of your own labour
* Self-employed individuals only
** Discuss the tax consequences relating to a deduction of capital cost allowance on your principal residence with your accountant, as it is not always advantageous
If you have any further questions regarding the deductibility of vehicle expenses, please do not hesitate to contact us.
 
Offices of Alan Martin Associates