Business Use of Home Expense
In Canada, if you’re running a business from your home, you may be eligible to claim home office expenses on your income tax return.
To claim home office expenses, you must meet certain eligibility criteria set by the CRA. Generally, you must use the workspace in your home exclusively for the purpose of earning income, and it must be your principal place of business or used on a regular and continuous basis for meeting clients, customers, or patients.
Allowable expenses typically include a portion of your home’s operating expenses, such as utilities, property taxes, home insurance, and maintenance costs. You can also deduct a portion of your rent or mortgage interest, as well as expenses related to office supplies, phone and internet, and certain equipment.
It’s important to maintain accurate records and documentation to support your home office expenses claim. This may include invoices, receipts, utility bills, mortgage statements, and a floor plan indicating the square footage of your home office relative to the total living space.
