Personal Tax Tip: Home office expenses

If you are self-employee you have more flexibility on the deductions available for home office expenses.  Just like any other valid business expense incurred to generate income you can deduct home office expenses for tax purposes.  

There are two requirements in order to qualify for the home office deduction:

1)  The home office is the principal place of business.  ( generally more than 50%)

2) The home office is used exclusively to earn income ( i.e. you use your home office regularly for meeting clients and customers)

Expenses to be deductible:

-Mortgage interest or portion of rent 

-Property taxes 


- Water

- Home Insurance

-Maintenance costs  

The portion of expenses directly related to your business are fully deductible.

Employees have restrictions and cannot deduct mortgage interest.  Also, if a home office is requirement for employment, it is required that you have your employer certify a T2200 form, under your employment contract noting that a home office is a requirement.

For more information please contact an MP Advisor.

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