I put a new carpet in my home music teaching studio in 2020. Should I claim it as an office expense, a capital cost, or a portion of it as business use of home?

Yes, you would use it as a business expense. As per the Canada Revenue Agency Business-use-of-home expenses

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

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