Home office expensesIf you operate your business from your home office, you can deduct certain expenses from your business income.
Before entering your expenses, you must determine the portion of your home that is used for your business.
To enter your expenses, please follow these steps:
1- On the "Left side menu on the Interview tab", select the page "Home office expenses" under the item "Self-employment income".
2- Enter the portion (%) of the home that is used for personal purposes.
3- If the home office is also used by your spouse, enter your share (%) of the expenses related to the business use of the home, otherwise leave blank.
NOTE: By default, the percentage is 100%. If you share the office with the spouse, enter your own percentage. Don not enter 0%, because the software will not calculate the home office expenses in your own return.
4- Enter your home office expenses in the appropriate fields.
If you want to enter additional expenses that are not listed in the "Home office expenses" page, such as rent paid, enter the amount in the field "Other home office expenses - specify". Enter a description and the amount.
The amount eligible for your home office expenses will be carried over by the program to line 9945 of federal form T2125 and, for Quebec residents, to line 258 of form TP-80.
NOTE:
The amount you can deduct for Business-use-of-home expenses cannot be more than your net income from the business before you deduct these expenses. In other words, you cannot use these expenses to increase or create a business loss. However, you can carry to subsequent taxation years any portion of the amount that you cannot deduct for the given taxation year because of this limit.
For more information regarding home office expenses, please consult the following links:
For the CRA:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002.html
For Revenu Québec:
https://www.revenuquebec.ca/documents/en/publications/in/IN-155-V%282017-11%29.pdf
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Webpage: KPA320-20200107171506NI.htm