If you are fully self-employed and working from home, (or an employee who works from home at the request of your employer), there are a number of credits and deductions you may be eligible for.
Before you start the process of claiming these amounts, you first need to determine whether you are claiming employment or business use of home expenses.
- If you are self-employed, you would record your business use of home expenses on form T2125.
- If you are an employee and work from home you would record your home expenses on form T2200. You will also need to have this form signed by your employer, certifying your eligibility to make these claims.
- If you are a salaried or commissioned employee, you would record your home expenses on form T777.
- If you are a transportion or trucking employee, you would record your business expenses on form TL2.
To qualify for business-use-of-home expenses, you must:
- Use the home workspace only to earn your business income, OR
- Use it on a regular and ongoing basis to meet your clients, customers, or patients
- You cannot have another office at a second location and claim home workspace expenses.
The easiest way to figure out the amount of home expenses you are eligible to claim, is to determine the amount of space you used for business purposes. As an example, if you live in a four bedroom home and used one of those bedrooms as a home office space, you are then eligible to claim 25% of your total property expenses for business purposes.
Everything from water to gas to snow removal and cleaning costs may be claimed, but make sure to keep copies of all receipts in order to support your claims.