Work-Space-in-the-Home Expenses: Who Qualifies and What You Get
Learn how self-employed individuals in Canada can claim deductions for home office costs like rent and utilities.
This scheme allows self-employed people to deduct a portion of their household running costs from their business income.
Who it's for
This is for self-employed individuals who use a specific part of their home solely for their business activities.
What you get
You can claim a pro-rated deduction for certain household expenses. This includes costs like rent, utilities, and home insurance. The amount you can claim is based on the proportion of your home used for work.
What it costs you
To use this, you must perform precise calculations based on the square footage of your workspace compared to the total size of your home. You will also need to keep all receipts and records to support these figures.
The catch to know
The area you claim must be used exclusively for business. You cannot claim a space that serves a dual purpose, such as a corner of a living room used for both relaxing and working.
How to apply
- Calculate the specific square footage of your workspace.
- Determine the total square footage of your entire home.
- Gather all receipts for rent, utilities, and insurance.
- Apply the proportional deduction when filing your taxes.