Tax Write Offs for Working from Home

If you are a salaried employee working from home, you will need to get some tax forms from your employer.

Here is the details:
https://www.canada.ca/en/revenue-agency ... enses.html

If you are self employed and use your home to conduct business, then you can deduct a lot of expenses off the self employment income

khkchan wrote: ↑ If you are a salaried employee working from home, you will need to get some tax forms from your employer.

Here is the details:
https://www.canada.ca/en/revenue-agency ... enses.html

If you are self employed and use your home to conduct business, then you can deduct a lot of expenses off the self employment income

Yeah, I've already looked over that form. It doesn't quite answer my original question. My employee contract doesn't necessarily require that I work from home but the fact that I'm medically accommodated and can't necessarily work in a traditional office environment requires me to do so. To me, the forms available don't clearly address that point.

Get a letter from your doctor, give it to your employer, get them to fill out the proper forms, send everything off to the CRA, and claim any legal write-offs.

It would seem odd if you got write offs for working from home when the employer doesn't require it. Even if you use a bit more utilities by being home I would think that is more than made up for with the decrease in commuting expenses (which can be huge), wardrobe (many of us have to dress different at work than we can choose to do at home), meals, etc.

You need the employer to provide the T2200. After that you can claim a portion of your heat, electricity and maintenance as it pertains to the workspace. You can't claim insurance, property tax, etc. as a salaried employee. The link provided above explains it.

don242 wrote: ↑ You need the employer to provide the T2200. After that you can claim a portion of your heat, electricity and maintenance as it pertains to the workspace. You can't claim insurance, property tax, etc. as a salaried employee. The link provided above explains it.

I went through the T2200 process when I was teleworking with my previous company. I found that the benefit was barely worth the trouble of doing the paperwork. I my case I was getting something like $75 back on my taxes for the use of 1 bedroom of my house as an office.

Dealmaker1945 wrote: ↑ I went through the T2200 process when I was teleworking with my previous company. I found that the benefit was barely worth the trouble of doing the paperwork. I my case I was getting something like $75 back on my taxes for the use of 1 bedroom of my house as an office.

Yeah, as a salaried employee it really isn't a lot. You figure if an office is about 5% of the space. Total up your heat and electricity bills (even assume somehow you have $3000 in a year) and then take 5% of that. That amount gives you a deduction of $150 at your marginal rate which as you mentioned, depending what your rate is, will only equate to ~75. Still it is money back if you can easily do it, but for some it is probably not worth the hassle.

don242 wrote: ↑ Yeah, as a salaried employee it really isn't a lot. You figure if an office is about 5% of the space. Total up your heat and electricity bills (even assume somehow you have $3000 in a year) and then take 5% of that. That amount gives you a deduction of $150 at your marginal rate which as you mentioned, depending what your rate is, will only equate to ~75. Still it is money back if you can easily do it, but for some it is probably not worth the hassle.

They are lucky to get anything IMO. I still don't see the hardship in staying home to work. Much cheaper than having to commute. I would be thrilled to have a job that allowed me to work from home.

Chickinvic wrote: ↑ They are lucky to get anything IMO. I still don't see the hardship in staying home to work. Much cheaper than having to commute. I would be thrilled to have a job that allowed me to work from home.

Agree. When I first started to work from home, my company also paid my internet and phone - sweet. Eventually, they gave us a softphone and made us pay our own internet. But I figure that working from home saved me >$3,000 a year in costs (gas, tolls, car insurance, vehicle wear and tear, daily Starbucks, office lunches etc.) so it was like a pay raise. Not to mention the quality personal time I gained from not commuting. And I got a lot more work done at home than at the office.

Some companies, including my old one, have done a 180 on teleworking. They are bringing everyone back to an office.

It's more difficult and less worthwhile than you think. We have a couple of employees who work from home, and I've gone over the tax calculations with them. Both decided it wasn't even worth bothering with the forms. The key factor for them was this: "No deduction can be made for the rental value of the work space area in a home owned by the individual." So basically it's just a small percentage of utilities, not worth the complex claiming procedure and likely audit.

Exp315 wrote: ↑ It's more difficult and less worthwhile than you think. We have a couple of employees who work from home, and I've gone over the tax calculations with them. Both decided it wasn't even worth bothering with the forms. The key factor for them was this: "No deduction can be made for the rental value of the work space area in a home owned by the individual." So basically it's just a small percentage of utilities, not worth the complex claiming procedure and likely audit.

I agree, it may not be worth it. If you claim a portion of your house for work and deduct expenses, when you sell your house, that portion used for business is considered capital property, and subject to capital gains tax.

willowberry wrote: ↑ I agree, it may not be worth it. If you claim a portion of your house for work and deduct expenses, when you sell your house, that portion used for business is considered capital property, and subject to capital gains tax.

Not here. As an employee there is no CCA deduction allowed so that is not an issue.

Thanks all. It's pretty clear the effort isn't worth it and I'm likely ineligible anyways.

willowberry wrote: ↑ I agree, it may not be worth it. If you claim a portion of your house for work and deduct expenses, when you sell your house, that portion used for business is considered capital property, and subject to capital gains tax.

I'm self-employed with a home office, not an employee, but I think the above is only the case if you take a capital cost allowance deduction, not an automatic.