Self Employed Use of Home Expense
Expenses for the business use of a workspace in your home may be deducted if one of the following conditions are met:
It is your principal 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, customers or patients.
✋🏻 What expenses are available for deduction?
Heating
Home insurance
Electricity
Maintenance
Property taxes
Mortgage interest
Other expenses (Rent/Home phone/ internet/Alarm System/Strata fee)
CCA
✋🏻 How to calculate your deductions?
The amount of deduction to be calculated will require a use of a reasonable base such as the area of workspace divided by the total square footage of your home.
If only part of your home is for your business,
You must calculate how many hours in a day you use the rooms for your business, divided by 24 hours;
Multiply this amount by the business part of your total home expenses.
For additional information, please visit the CRA website here.
(*) This article is intended as general information only and is not to be relied upon as constituting legal, financial, or other professional advice. A professional advisor should be consulted regarding your specific situation.
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