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What expenses can I deduct for working from home during COVID?

Updated: Mar 2



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.




www.ibtax.ca

Disclaimer: The information provided on our website and / or Facebook page is intended to provide general information. This information does not take into account your personal situation and is not intended to be used without consultation from an accountant. iB Accounting & Tax will not be held liable for any problems that arise from the usage of the information provided on ibtax.ca or the Facebook page..



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