How To Claim Home Office Expenses

Working from home has perks, but did you know you can deduct some of your home office expenses from your taxes and lower your tax bill?

With more and more business owners, self-employed individuals and freelancers working from home, it's crucial to understand how you can save money on your taxes by claiming home office expenses.

However, to qualify to deduct home office expenses, there’re some criteria you would need to meet and in this video, we dive deep into eligibility criteria for deducting home office expenses, the expenses you can claim, and how to calculate the amount you can deduct.

This video is perfect for freelancers, self-employed individuals, and employees with home offices. Don't miss out on the chance to maximize your tax savings.


Key Moments In This Episode
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00:00- Intro
0:27 - General tax deductibility rule
1:28 - The 2 Criteria that qualify you to claim home office expense
2:18 - Criteria 1 - Principle place of business
6:13 - Criteria 2 - Used exclusively to earn business income AND used on a regular and continuous basis to meet clients
7:36 - Definition of “meeting clients” according to CRA
8:55 - What home office expenses can you deduct?
9:31 - What is the actual amount you are qualified to deduct?
10:35 - What is considered minor repairs?
11:46 - Restrictions to deducting home office expenses
13:03 - Will claiming a home office deduction affect your primary residence exemption claim?

If you have any questions or thoughts after watching this video, leave a comment below, and I’ll respond as soon as possible.

Don’t forget to subscribe to my channel for more videos on Canadian real estate and tax-saving strategies, so you don’t miss a thing!

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Please make sure to speak to a professional that knows your personal situation before making a decision.

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DISCLAIMER:

Real estate Tax planning is a personalized decision and will depend on your situation, priorities, and risk tolerance. Consult with your legal and tax advisors to ensure you get the best personalized advice.
The information contained in this video is for general information purposes only.
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[DorianRachubinski]

Excellent video, very thorough and just what i was looking for

[is-sam]

What about the home office cost like desk, chair, computer .. is it a deductible business expense?

[suarezig]

Brilliant video and fantastic channel 🤩 Much prefer your “own” creative examples (ie: real estate office vs home office) versus those that the CRA utilizes!

Your channel and content are extremely underrated as we speak ... however we see this building VERY FAST, just a matter of time. Keep at it and we look forward to your future videos! Thank you kindly 🙏

[HelpDeskPersonaJOKER]

I write for clients, but I do not meet them. There is a certain amount of communication with them, and I think it will pass. It is intensive communications.

[HelpDeskPersonaJOKER]

Maid can be deduction under maintenance of a dedicated space home office.

[fi_high]

If using a property mgmt company and they're purchasing parts/services and adding it to the PM invoice, could we report it as just a PM expense or does it need to be broken out into different categories?

[pervezakhtar]

Quite informative
How do record the Business use of home office expenses in the corporation return (T2)?

[clivebrown]

What if you do not have a mortgage but still operate exclusively from your home office.

[yasheikaturner]

Thank you, very informative. Are you currently accepting new clients?

[mujialiao]

This is great hanks for sharing all the info. Tho question what if on a given year you made no income at all due to slow market but you still spent money on advertising, software subscriptions, even tutorials and such to ramp up your business to expand the service it can provide, can you still write off some of that?

[chrisrichardson]

question: Our Primary home is in Hope BC. My wife works in town as a Inc artist for film. We have had to rent a home in Coquitlam when Natalie works. Would we be able to use per diem for hotel expense.

[mikecate]

Question. I am not currently working and I have rental income only. Can I deduct and use my principal place for home office. I use one room for office only.

[raczyk]

Can you have a home office if:
1. you do uber eats/ door dash /instacrt?

2. You operaete a youtube channel?

[Albertdsa]

My real estate agent gave me a part of the commission he earned when I purchased my primary residence. Can I reduce the cost of my purchase by this amount or have I to pay tax on it as commission earned (T4). (Example: Purchase price + land transfer tax + lawyer fees - commission = net cost of primary residence). Coz capital gains is tax free on primary residence eventually. I am a salaried employee.

[famelabalite]

I am a regular employee that go to work everyday but I rented one of my room can I have a deductive?

[pakmichael]

What if you are a full-time salary employee for a company that requires you to work from home and you use a room in your home as your full time office space? Am I still able to claim home office expense on my taxes even though it's not my business but it is my principle place of business.

[delpinohjayaraj]

Hi.. Very informative video. Awesome work.

Had a question..

Can we use Business credit card or Business Incorporated bank account to pay below monthly home expense bills? corporation's address is the same as the owner's residential address,

Cell phone
Internet
Auto & home insurance
Enbridge Gas
Home Electricity
Home Water
Home security
Property Tax
Mortgage payments?