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Business-use-of-home expenses: my spouse and I are 50% partners living in same home - should we enter 50% of the expense in my t2125 and 50% of the expense in his t2125 ?

There seems to be lack of guidance for business use of home expenses for spousal business partners living in same home. Should we both enter 50% of the expense on our t2125? Or both enter 100% of the expenses (electricity, mortgage interest, etc.)

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Moderator

Business-use-of-home expenses: my spouse and I are 50% partners living in same home - should we enter 50% of the expense in my t2125 and 50% of the expense in his t2125 ?

The “business use of home” section pertains to the t2125 of the individual rather than the partnership/couple. So if you enter home office expenses on Spouse A’s t2125, it will only deduct itself from Spouse A’s business income, even if Spouse A & Spouse B have indicated they are partners. So you would have to split the “gross” expense amount between the two spouse’s t2125s, if you want it to show on both returns.

Ex: Bekka & Tom spent $2000 on electricity. If they share a business 50/50, then each would put $1000 as their “business use of home” electricity cost. If they both use 1 room out of a 10 room house then each would get $100 claimed as an expense. If Bekka includes all $2000 on her own t2125, and Turbo includes $0, then Bekka would have an expense claim of $200, while Turbo would show $0.


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Moderator

Business-use-of-home expenses: my spouse and I are 50% partners living in same home - should we enter 50% of the expense in my t2125 and 50% of the expense in his t2125 ?

The “business use of home” section pertains to the t2125 of the individual rather than the partnership/couple. So if you enter home office expenses on Spouse A’s t2125, it will only deduct itself from Spouse A’s business income, even if Spouse A & Spouse B have indicated they are partners. So you would have to split the “gross” expense amount between the two spouse’s t2125s, if you want it to show on both returns.

Ex: Bekka & Tom spent $2000 on electricity. If they share a business 50/50, then each would put $1000 as their “business use of home” electricity cost. If they both use 1 room out of a 10 room house then each would get $100 claimed as an expense. If Bekka includes all $2000 on her own t2125, and Turbo includes $0, then Bekka would have an expense claim of $200, while Turbo would show $0.


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