Posted on February 07, 2017 in Corporate Tax Personal Tax Small Business Tax Planning

Home OfficeAre you working from home? More and more taxpayers are starting to work from home which is providing an opportunity to claim a portion of your home expenses.

As an employee, commissioned employee and/or small business owner, this claim is based on the portion used for the office space and is dependent on your employment status. So what can you claim?

As a salaried employee, you can claim costs that relate to your work space for electricity, heating and maintenance. However, you cannot claim mortgage interest, property taxes, home insurance or depreciation on your home.

As an employee earning commissions, in addition to claiming all of the same items as a salaried employee, you can also claim home insurance and property taxes. But you still cannot claim mortgage interest or depreciation on your home.

Now, if you are a business owner operating from your home, you can claim all of the same expenses that a salaried or commissioned employee can claim, as well as the mortgage interest but not capital cost allowance.

Keep in mind, that if you have an office where you work as an employee or as a business owner renting another location, there are special rules that need to be considered prior to claiming on your tax return.

Check out our checklists to help make your next filing easier; one for employees and self-employed. Remember to consider alarm monitoring, water & sewer and strata too.

Remember to always seek the advice of a Professional CPA.

***This blog is for information only and not to be used as tax advice or planning without first seeking professional advice. Information is subject to change without notice.