Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Oct 30, 2019 5:49:09 PM

Can you tell me is there no tax benefit in MB for using part of your home for self employed working from home? When I submit all the numbers nothing changes in my refund.

0 1 887
1 Best answer
Level 15
Oct 30, 2019 5:49:10 PM

When claiming Business Use Of Home expenses on a T2125-Business Statement, and you have already reduced your business income to zero, or are in a loss situation (expenses exceed income), your Home Expenses cannot be used to create or increase a loss. Regardless of which province you reside in. 

From the following CRA information:

"The amount you can deduct for business use of home expenses cannot be more than your net income from the business before you deduct these expenses. In other words, you cannot use these expenses to increase or create a business loss".

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partners...

1 Replies
Level 15
Oct 30, 2019 5:49:10 PM

When claiming Business Use Of Home expenses on a T2125-Business Statement, and you have already reduced your business income to zero, or are in a loss situation (expenses exceed income), your Home Expenses cannot be used to create or increase a loss. Regardless of which province you reside in. 

From the following CRA information:

"The amount you can deduct for business use of home expenses cannot be more than your net income from the business before you deduct these expenses. In other words, you cannot use these expenses to increase or create a business loss".

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partners...