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JAIKS BLOG

JAIKS BLOG

I am pleased to provide a variety of resources on accounting, taxation, and other related subjects that I think you will find helpful to both individuals and businesses.
Browse through the Quick Tools resource menu then, if you have a question that isn’t answered, I can help to clarify your situation. Simply contact me by email or give me a call at 778-792-3282. I would be happy to meet with you for a free, no-obligation consultation to discuss your unique situation.

The Principle Residence, the Home Office, and the Taxpayer

Hello everyone, as has been discussed previously there are new rules in place governing what constitutes a principle residence and the reporting of such for tax purposes. In addition to tightening the definition of what constitutes a principal residence, stating that to claim such someone must reside there at least 50% of the time. The CRA has also changed their language regarding home offices. The CRA 2016 tax planning guide rigidly defines the home office as a section of a principle residence “used on a regular and continuous basis for meeting customers, clients, or patients.”


If you are self-employed and utilize a home office, you can deduct a portion of the operating cost of your home. For example, if your home office takes up 15% of the total square footage of your home you can claim as a deduction from your business income 15% of property taxes, hydro, heat, home insurance, maintenance costs, and even 15% of your mortgage interest (but not principle). These expenses cannot exceed $5000 in a fiscal year but can be carried forward and claimed against income in the next year.

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