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burgesjm
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Can I claim percent use of home for two self-employment business when they use the same office space?

 
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Antomeister
Level 3

Can I claim percent use of home for two self-employment business when they use the same office space?

According to the Canada Revenue Agency (CRA), you can deduct expenses for the business use of a workspace in your home, as long as you meet one of the following conditions:

* It is your principal place of business

* You use the space only to earn your business income, and you use it on a regular and ongoing basis to meet your clients, customers, or patients

If you rent your home, you may deduct part of the rent and any expenses you incur that relate to the workspace as well.

 

Considering these are the only conditions required, two self-employed businesses may deduct expenses in the same workspace. But must follow the calculation as follows: Calculate how many hours in the day you use the rooms for your business, and then divide that amount by 24 hours. Multiply the result by the business part of your total home expenses. This will give you the household cost you can deduct. If you run the business for only part of the week or year, reduce your claim accordingly. If both business do this it should accurately reflect both expenses and their share. For more information, check out: Canada Revenue Agency - Business use of home expenses

 

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