If you are an employee and choose to use the detailed method to claim home office expenses, you must be aware of what you can and cannot claim.
Salaried employees can claim the following:
Electricity
Heat
Water
Utilities portion of condo fees
Home internet access (modem rental and connection fees are not deductible)
Maintenance and minor repairs (only related to the work space at home)
Rent
ONLY COMMISSION EMPLOYEES CAN ALSO CLAIM THE FOLLOWING:
home insurance
property taxes
lease of a cell phone, computer, laptop, tablet, fax machine, etc. that reasonably relate to earning commission income
You cannot claim the following:
mortgage interest
principal mortgage payments
home internet connection fees
furniture
capital expenses (replacing windows, flooring, furnace, etc)
wall decorations
Office supplies and telephones:
If your employer requires you to pay for office supplies or certain phone expenses, you may be able to claim those expenses. Not all office supplies and telephone expenses are deductible.
You should not assume that you can claim all your home office expenses. There are very specific rules this year and you will be surprised when you see the list of what you can and cannot claim. For example, you can claim envelops, ink cartridges, paper clips or binder clips, but YOU CANNOT claim calculators, office chairs, desks, USBs, or printers.
CRA has published a very detailed list of expenses that you can and cannot claim for that purpose.
We highly recommend you consult the CRA website and/or IB Accounting & Tax before you claim home office expenses.
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