
How Safe Is Your CRA Data?
Many Canadians have a place reserve in a den or family room where they can do some office work. With some type of computer, printer, desk, and phone, it could even look like an office. But a taxpayer’s ability to deduct expenses for an individual workspace depends on whether the Canada Revenue Agency considers it to be a legitimate office at home.
So, it’s really worth exploring the problem with a tax professional to see if your office at home qualifies. The first thing one notices after reading the tax rules is that the range of deductible expenses varies depending on the type of worker you are. If you’re a worker, your deductions are much more limited than if you’re self-employed.
Saying you want to work from home isn’t enough to earn the to deduct home office expenses. As a worker, you can only deduct office expenditures if your company requires one to maintain a working office at home. What’s new this tax year? Your company must sign a T2200 federal form that certifies this. If the business won’t sign, you can’t claim. The workspace must be where you “principally perform the duties of employment.” means more than 50 per cent of that time period Principally.
Failing the first condition, the workspace must be used and then earn employment income, and you must use it on a regular and continuing basis to meet customers or clients. Evelyn Jacks, president of Winnipeg-based Knowledge Bureau. Due to the stringent conditions, most employees …