“Can I write off
an office in my home?”
In certain situations it may be possible to write off a work
space in your home. This may provide a tax write off for items
such as mortgage interest, hydro and other utilities, property
taxes, rent, insurance and home maintenance. These expenses
would be written off on a proportionate basis, based on the
square footage of your home office as a percentage of your total
home square footage.
If you are an employee, your only access to this write off as
part of your employment is if your employer signs section 9(a)
of form T2200 “Declaration of Conditions of Employment”. This
form essentially states that your employer requires you to
maintain a work space in your home.
If you are a small business owner, you must meet one of the
following two tests to allow for a home work space write off:
(a) The work space is the individual’s principal place of
(b) It is used on a regular and continuous basis for meeting
clients, customers or patients of the individual in earning
income from business.
It is important to note that the space must be used exclusively
for business. For example, if your home office is in your
bedroom, it would not be eligible for the write off provisions.
There are additional restrictions on the type of home office
expenses allowed depending upon whether or not you are a
salaried employee, a commission employee or self-employed. For
example, if you are an employee you cannot write-off any
mortgage interest but as a self-employed individual you can.
To find out if you are eligible to write off a work space in
your home, please give us a call.
NOTE: The Shannon
& Company 'Tips' are NOT intended to cover all tax issues. You
should talk to your Shannon & Company professional before making
any decisions regarding the information found here.