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  • Jun 14th, 2020 9:04 am
[OP]
Member
User avatar
Nov 23, 2014
371 posts
356 upvotes
Toronto, ON

Business from Home-Claim rent ?

If a incorporated business is run from home,can I pay and claim rent as expenses?

If so,are there any limitations ?
5 replies
Newbie
Sep 16, 2015
98 posts
147 upvotes
Calgary, AB
unodos wrote: If a incorporated business is run from home,can I pay and claim rent as expenses?

If so,are there any limitations ?
You can claim expenses, but there are significant limitations. Here's what the CRA has to say on the topic.
Deal Addict
Jan 21, 2018
2765 posts
2774 upvotes
Vancouver
Also be careful that your rental and insurance agreements allow business operated from home if you are going to go official by claiming a tax deduction, or you could end up in an awkward situation.
[OP]
Member
User avatar
Nov 23, 2014
371 posts
356 upvotes
Toronto, ON
Scote64 wrote: Also be careful that your rental and insurance agreements allow business operated from home if you are going to go official by claiming a tax deduction, or you could end up in an awkward situation.

will my insurance will be notified by CRA ?
Mine is online business though
Deal Addict
Jan 21, 2018
2765 posts
2774 upvotes
Vancouver
unodos wrote: will my insurance will be notified by CRA ?
Mine is online business though
Not likely. But if there is ever any cause for the insurance company to think they could weasel out of paying for a loss because you did not fully disclose your home business, they may ask you to produce documents to prove that you did not run a home business or be denied coverage. Doesn't matter that if it had nothing to do with the loss, all they have to do is prove non-disclosure as a violation of your insurance terms. How would they know? Internet search turns up your name in association with a home business, someone with a grudge gives them a tip, etc.. They might not bother going to any investigative effort for a small loss, but a total loss of a $500,000 home? Or a $1m liability claim from a delivery person delivering a document in your business name who slips and falls on your walkway? You bet they would.

Personally I think the risk is low, but you need to be aware of it so you can make your own judgement of how much risk you are willing to take.
Newbie
Oct 1, 2019
59 posts
13 upvotes
I think there are 2 ways you can do it according to my accountant. You can process it as an expense claims but could raise some flags in audits or there are forms you can follow. In short you need to allocate percentages of expenses for utilities and rent or property taxes if you own a house. The percentage of rent should be of the office in relation to the rest of the apartment.

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