I researched this a bunch when we were setting up our space and this is what I found.
NOTE: I’m not an accountant, this is just our interpretation of CRA provisions dealing with home office expenses.
So, the regulations say that you can claim office expenses if one of the following are true.
You use your home office to meet with clients.
You use the space more than 50% of the time for work.
Many of our members will continue to keep their home offices. They will likely have to keep a log of when they come to the space in the same way that people who claim automotive expenses keep a travel log to determine the appropriate amount of their deductions.
What happens if you’re under the 50%? The regulations say you can pro-rate the amount based on how much time you are there. So if you’re home office takes up 25% of your home, and you’re using it 2 days/week, that’s 40%. If your total home expenses were 1000, then that would be 40% of $250, which is $100. It’s just if you’re there more than 50%, then you don’t have to prorate it.
I’m actually moving out of my home office so that my oldest son can have his own room, so I won’t be claiming it anymore regardless.
Hope this helps people. Have a great Canada Day!
Working independently, together.
twitter: @coworkniagara, @trevortwining
On Jun 30, 2014, at 4:15 PM, Aaron Cruikshank [email protected] wrote:
I get this question a lot from my clients and friends using coworking spaces - if you have a desk at a coworking space AND you maintain a home office (I use both about 50% of the time each), can you claim both expenses at tax time?
Someone recently suggested to me that you might get in trouble with Revenue Canada if you’re claiming a coworking space AND business use of the home deductions.
Anyone had to deal with this yet?
e-mail: [email protected]
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