Personal Finance

Salaried Employee Works From Home - Can he Claim House Expenses?

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  • Feb 16th, 2017 11:07 am
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Member
Nov 18, 2013
287 posts
103 upvotes
Toronto

Salaried Employee Works From Home - Can he Claim House Expenses?

For the tax experts out there.....

My husband is a salaried employee with a corporation. He doesn't have an office and actually works from home each day (with the exception of the occasional meeting where he goes to the company's head office). The company covers our internet bill because he has to have a whole office set up and they give him a blackberry for calls. My question is, is there somewhere on the tax return that we can claim additional expenses related to the house? Since he started working from home I've noticed that both our gas and electricity have gone up because he's home all day. We now have to keep the heat on all day and use electricity. Logically, it seems like we should be able to claim something but tax laws don't always follow logic...... A few years back when he was business for self, we claimed a portion of everything since his office was in our home. I'm just not sure if there's any mechanism within the tax return to do the same thing (to a certain extent) for a salaried employee.

Thanks for any input
18 replies
Deal Fanatic
Jan 21, 2014
5475 posts
2998 upvotes
pinkmanwhite wrote: For the tax experts out there.....

My husband is a salaried employee with a corporation. He doesn't have an office and actually works from home each day (with the exception of the occasional meeting where he goes to the company's head office). The company covers our internet bill because he has to have a whole office set up and they give him a blackberry for calls. My question is, is there somewhere on the tax return that we can claim additional expenses related to the house? Since he started working from home I've noticed that both our gas and electricity have gone up because he's home all day. We now have to keep the heat on all day and use electricity. Logically, it seems like we should be able to claim something but tax laws don't always follow logic...... A few years back when he was business for self, we claimed a portion of everything since his office was in our home. I'm just not sure if there's any mechanism within the tax return to do the same thing (to a certain extent) for a salaried employee.

Thanks for any input
I think if he can get his employer to provide him T2200 tax form then he can claim his office expenses
Deal Fanatic
Apr 23, 2009
5154 posts
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South of Ottawa
What others have said. His employer has to provide a T2200. He can deduct partial expenses, based on the size of a dedicated office, hours worked, etc.

I work at home 4 days a week and when all is accounted for, I would have about $50 in deductions (1/3 of 10% of utility bills). So it's not a huge amount of money generally speaking.
Sr. Member
User avatar
Jan 14, 2007
568 posts
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GTA North
Snip from link provided by AlexS748

"You also have to use it on a regular and continuous basis for meeting clients, customers, or other people in the course of your employment duties."

If he meets this criteria then yes, a portion of some home expenses (based on square footage 120/2000 or # of rooms 1/8) can be deducted
Deal Guru
May 29, 2006
10275 posts
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yup i worked from home for 2 years with IBM, i was able to claim internet, phone, heat, power
Deal Fanatic
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Nov 19, 2004
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The main difference from when he was self employed vs an employee now is you can no longer claim a portion of mortgage interest, insurance and taxes. But the heating and electricity and office related maintenance is still fine. Probably doesn't work out to a lot, but you may as well claim what you can.
Member
Aug 17, 2008
480 posts
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Quebec
IMHIP2 wrote: Snip from link provided by AlexS748

"You also have to use it on a regular and continuous basis for meeting clients, customers, or other people in the course of your employment duties."

If he meets this criteria then yes, a portion of some home expenses (based on square footage 120/2000 or # of rooms 1/8) can be deducted
ONE of the following


Also, you must meet one of the following conditions:

The work space is where you mainly (more than 50% of the time) do your work.
You use the work space only to earn your employment income. You also have to use it on a regular and continuous basis for meeting clients, customers, or other people in the course of your employment duties
Sr. Member
Dec 13, 2006
596 posts
271 upvotes
Can someone clarify this for me please:

I have been told that if I Deduct part of my home for an office, then if in the future I sell my house, I would need to pay tax on that portion of the gain.

Thanks
Member
Aug 17, 2008
480 posts
201 upvotes
Quebec
grisensko wrote: Can someone clarify this for me please:

I have been told that if I Deduct part of my home for an office, then if in the future I sell my house, I would need to pay tax on that portion of the gain.

Thanks
http://www.cra-arc.gc.ca/tx/tchncl/ncmt ... 2-eng.html

2.59 It is the CRA’s practice not to apply the deemed disposition rule, but rather to consider that the entire property retains its nature as a principal residence, where all of the following conditions are met:

a) the income-producing use is ancillary to the main use of the property as a residence;
b) there is no structural change to the property; and
c) no CCA is claimed on the property.
Sr. Member
Dec 13, 2006
596 posts
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sr79 wrote: http://www.cra-arc.gc.ca/tx/tchncl/ncmt ... 2-eng.html

2.59 It is the CRA’s practice not to apply the deemed disposition rule, but rather to consider that the entire property retains its nature as a principal residence, where all of the following conditions are met:

a) the income-producing use is ancillary to the main use of the property as a residence;
b) there is no structural change to the property; and
c) no CCA is claimed on the property.
Thanks!
Deal Expert
Oct 6, 2005
16599 posts
2315 upvotes
pinkmanwhite wrote: For the tax experts out there.....

My husband is a salaried employee with a corporation. He doesn't have an office and actually works from home each day (with the exception of the occasional meeting where he goes to the company's head office). T
Only if your husband is issued a T-2200 by the company.

No T-2200, no home office expenses.

sr79 wrote: ONE of the following


Also, you must meet one of the following conditions:

The work space is where you mainly (more than 50% of the time) do your work.
You use the work space only to earn your employment income. You also have to use it on a regular and continuous basis for meeting clients, customers, or other people in the course of your employment duties
And have a T-2200.

The T-2200 is a mandatory form to have at home expenses claimable - without the form, it doesn't matter if you work 100% of the time at home, you can't claim expenses.

I'm not sure why some companies are reluctant to give out T-2200s - do they lose out on some tax credits themselves?
Deal Addict
Aug 20, 2007
1930 posts
707 upvotes
Kitchener
If your husband's company pays for the internet, remember that you should be claiming this as a taxable benefit for the portion that you use for personal use. That's assuming you use it for personal use after business hours. For non-contractor type roles that work from home the T2200 does very little for you as a previous poster mentioned.
Deal Guru
Dec 31, 2005
13306 posts
736 upvotes
Keep in mind the space that you use for your home office (if you are trying to claim) must be dedicated for that purpose...not a multi function room. I've seen claims rejected upon audit as the room had a wall mounted TV and a sofa.

As for why companies are cautious... A few years back companies would give out the T2200 for any non-office employee (i.e. Sales Rep, Service Rep, Technical/Applications). But, these individuals were in the field and not therefore in the home office at least 50% of the time. Many companies got penalized and many became very strict.
Deal Guru
Dec 31, 2005
13306 posts
736 upvotes
peelhic wrote: If your husband's company pays for the internet, remember that you should be claiming this as a taxable benefit for the portion that you use for personal use. That's assuming you use it for personal use after business hours. For non-contractor type roles that work from home the T2200 does very little for you as a previous poster mentioned.
In most cases the paying for internet is as a supplement to income, so it is taxed.
Deal Addict
User avatar
Dec 27, 2006
1527 posts
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Toronto
Work from home, no commute, eh? Let's add that savings on commute cost to the taxable income, yummy: CRA.
Banned
Jan 20, 2017
46 posts
24 upvotes
Beachdown wrote: What others have said. His employer has to provide a T2200. He can deduct partial expenses, based on the size of a dedicated office, hours worked, etc.

I work at home 4 days a week and when all is accounted for, I would have about $50 in deductions (1/3 of 10% of utility bills). So it's not a huge amount of money generally speaking.
Unless you rent, in which case it can be higher. Last year I claimed 20% of my condo is used for my office.
Newbie
Feb 4, 2017
92 posts
21 upvotes
So to add to this, im in a similar situation working from home f/t salaried, but i travel once or twice a month to corporate offices for meetings if needed, which is like 6 hrs away.. would i be able deduct a portion of gas and/or car maintenance, meals during these times (ie travel expenses)? I do have a t2200. Thanks!!
Deal Fanatic
Nov 11, 2008
8075 posts
1748 upvotes
chumba wrote: So to add to this, im in a similar situation working from home f/t salaried, but i travel once or twice a month to corporate offices for meetings if needed, which is like 6 hrs away.. would i be able deduct a portion of gas and/or car maintenance, meals during these times (ie travel expenses)? I do have a t2200. Thanks!!
As far as I understand, correct me if I am wrong, but as a contractor yes, as an employee, no. The company suppose to pay your meals and and/or give you a mileage allowance.

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