TP can deduct an amount for the use of a workspace within a self contained domestic establishment s. 248(1): contained domestic a dwelling house, apartment or similar place of 8(13): Home “self establishment”: resident in which a person generally sleeps and eats Office (a) No deduction UNLESS: Expenses for (i) the place is where the individual PRINCIPALLY performs duties of office/employment Income from (ii) the place is used EXCLUSIVELY for the purpose of earning income from office/employment AND Office/ used on a regular/continuing basis for meeting customers or other persons in the ordinary course of performing duties of office/employment Employment (b) CANNOT make a deduction that exceeds income from office/employment a loss from a Can’t create workspace even if one exists (c) CAN carry forward deductions excluded under (b) losses- to the next year (ONLY one year) – Application: (may be hard to claim) allocate amount to workspace (portion of home) take whole value of home, calculate square footage, apportion then deduct the proportionate amount of expenses from if renting: utilities, insurance, rent if own: mortgage interest, insurance, property taxes, maintenance fees, utilities Joe deakes problem handout 12
8(13): Home Office Expenses for Income from Office/ Employment TP can deduct an amount for the use of a workspace within a self contained domestic establishment s. 248(1): “self contained domestic establishment”: a dwelling house, apartment or similar place of resident in which a person generally sleeps and eats (a) No deduction UNLESS: (i) the place is where the individual PRINCIPALLY performs duties of office/employment (ii) the place is used EXCLUSIVELY for the purpose of earning income from office/employment AND used on a regular/continuing basis for meeting customers or other persons in the ordinary course of performing duties of office/employment (b) CANNOT make a deduction that exceeds income from office/employment Can’t create a loss from a workspace even if one exists (c) CAN carry forward deductions excluded under (b) – losses- to the next year (ONLY one year) Application: (may be hard to claim) allocate amount to workspace (portion of home) take whole value of home, calculate square footage, apportion then deduct the proportionate amount of expenses from if renting: utilities, insurance, rent if own: mortgage interest, insurance, property taxes, maintenance fees, utilities Joe deakes problem handout 12
286-Jamieson-Law345-Final.docx