Investors and rental owners

Yes, you can. As of February 2017, CRA revised the rules to include "Business Use of Home" deductions for real estate investors earning non-business rental income. The rules around this claim are slightly different than regular home office deductions mainly in that you can deduct home office expense even if you have a rental loss

The following link will take you to the CRA information with this paragraph referring to this deduction: https://bit.ly/2EUyn5O

Expenses incurred in earning income from property

2.45 Subsection 18(12) limits the deduction of expenses related to the use of a work space in the home in computing an individual’s income from a business. Subsection 18(12) does not limit the deduction of expenses incurred to earn income from  property . This means, for example, that subsection 18(12) would not apply to expenses incurred for a work space in the home used for the management and accounting activities related to a non-business rental property.

2.46 Expenses relating to the use of a work space in the home that are incurred for the purpose of earning income from property are deductible where they meet the  general requirements for deduction  under the Act. The deductible portion of such expenses must be determined on a reasonable basis, as described in ¶ 2.18  - 2.20.

Here's another informative article detailing this deduction. https://bit.ly/2EXRjki And as there is no place on the actual T776 Rental Statement to calculate this deduction, one would need to manually calculate it and enter under "Office Expenses. 


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