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posted Oct 31, 2019 5:16:12 AM

As a self-employed person who uses his home for business, can I claim upgrades to home under maintenance as business use of home expense?

These upgrades are to the general home area such as flooring, plumbing and paint but seeing as the home is used as base for business and expenses are based on the square footage used for that business I assumed they are acceptable. Please confirm

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Level 15
Oct 31, 2019 5:16:14 AM

These type of upgrades to your home are considered to be "capital" in nature. They cannot be claimed as expenses and must be added to the Capital Cost of the home itself. If you were to claim Capital Cost Allowance (CCA or depreciation) on the home improvements, you would be eligible for a 4% deduction prorated by the area of the home actually used for business purposes.

With the exception of the paint, this could be considered a "maintenance & repair" expense. If it was for the entire home, enter the cost in the Business Use of Home section. If it was for space you used for your business use only, you can claim as a current expense.

1 Replies
Level 15
Oct 31, 2019 5:16:14 AM

These type of upgrades to your home are considered to be "capital" in nature. They cannot be claimed as expenses and must be added to the Capital Cost of the home itself. If you were to claim Capital Cost Allowance (CCA or depreciation) on the home improvements, you would be eligible for a 4% deduction prorated by the area of the home actually used for business purposes.

With the exception of the paint, this could be considered a "maintenance & repair" expense. If it was for the entire home, enter the cost in the Business Use of Home section. If it was for space you used for your business use only, you can claim as a current expense.