Where do I enter major house repairs (new roof, chimney repairs and fence replacement). Need to know the class and which CCA section to use.

[engraver09]

I operate a business from the house and would like to know where to enter the costs for a new roof and other major repairs in the CCA section and which code to use.

[Delphision · Accepted solution]

You cannot deduct general repairs to the residence just because you have an office in home.  The only deductible repairs relate directly to the business. Only the portion of heat light and water and repairs that directly relate to the business area can be claimed.  You can replace the flooring in the office, add more lighting, put in shelves, etc.  All of those items are claimable.  The roof over the whole house can't be claimed, or the chimney, or the fence as a deduction of the business.

You really do not want to add your residence as a business asset, as when you sell it, you would be paying much higher capital gains on a larger portion of revenue property.  Also, if you closed the business, you would have a tax liability due to a change of use from a revenue property back to a personal residence.

[engraver09]

Thank you. Much appreciated.

[hjhauffe519]

You say: You can replace the flooring in the office, add more lighting, put in shelves, etc.  All of those items are claimable.
Are they claimable as 'business use of home' or are they direct expenses of the business?

[Delphision]

If the home based business has a dedicated office, these expenses are direct business expenses.  If you are using a corner of your living room, the risk of being reassessed increases proportionately.  Business use of home is a portion of those few expenses that relate to overall costs such as heat, light, water.