Jan 16, 2021
Toronto, Jan 16, 2021 (Issuewire.com) - 1040 Abroad also offers the preparation of Canadian tax returns and this post addresses the deductibility of business expenses when preparing a Canadian tax return on form T1. Feel free to contact us with any Canadian tax questions.
Question: I worked from home due to COVID. Can I write off my home expenses on my taxes?
Answer: As with most tax-related questions, the answer is both yes and no.
Under normal circumstances, for home office expenses to be deductible, your working from home should have been a condition in your employment contract. COVID forced many to work from home in 2020, causing CRA to not only reconsider some of their rules in 2020 but to also simplify the process to make home office administration easier. Here are some examples of home office expenses that are now deductible:
Employees earning a commission may also deduct the following
The following are not deductible:
There are two options to claiming these expenses on your tax return:
Calculating Business Use of Home Expenses:
You rent a 1000 square foot apartment, and you have a second bedroom that you use as your office, exclusively for work. Your home office is 100 square feet. Since your office represents 10% (100/1000 square feet) of your home, you would be able to deduct 10% of the value of all your home expenses.
For more information, please contact us at firstname.lastname@example.org
1040 Abroad Inc.
Source :1040 Abroad Inc.
This article was originally published by IssueWire. Read the original article here.
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