How To Claim Home Office Expenses (2024 Update)
ฝัง
- เผยแพร่เมื่อ 9 ก.ค. 2024
- Working from home? Save money on taxes by deducting home office expenses!
In this video, learn about recent changes, the T2200 form, who qualifies, and how to claim deductions correctly. We'll cover eligible expenses and tips for documenting your workspace to maximize your tax savings!
Watch now!
T2200
www.canada.ca/en/revenue-agen...
T777
www.canada.ca/en/revenue-agen...
Key Moments In This Episode
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00:00: Introduction
2:21 - Home Office Deductions Updates
4:42 - T2200 Form
7:03 - Working From Home? You May Claim Expenses!
9:24 - Claim Home Office Expenses Correctly
11:45 - Deducting Expenses on Your Tax Return
14:06 - Eligible vs. Ineligible Deductions
16:27 - Proof of Home Office Space (Floor Plan)
If you have any questions or thoughts after watching this video, leave a comment below, and I’ll respond as soon as possible.
Don’t forget to subscribe to my channel for more videos on Canadian real estate and tax-saving strategies so you don’t miss a thing!
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Please make sure to speak to a professional that knows your personal situation before making a decision.
If you need to talk to someone on my team, email us at admin@cccpa.ca.
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DISCLAIMER:
Real estate Tax planning is a personalized decision and will depend on your situation, priorities, and risk tolerance. Consult with your legal and tax advisors to ensure you get the best personalized advice.
The information contained in this video is for general information purposes only.
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Very helpful! Thank you
so thankful for this post, very helpful! Thank you for posting! 😊
Glad it was helpful!
wow. what a banger of a video. thank you!
Thanks!
Really appreciate your effort in explaining with good examples 👍🏻
Thank you!
This was an extremely helpful video, thanks!!
Glad you like it
Thanks Cheryl for sharing. That's a huge help for me.
Glad it was helpful!
Thank you .was looking for something like this since while
Np!
It's really a good video; thanks for sharing. Just curious, can I claim the condo maintenance fee in the line43 Maintenance ?
Thank you, very helpful
Glad to hear that!
thanks, great video👍
Glad you liked it!
Great guidance!!! Thank you!
Glad it was helpful!
thanks for this! im on turbo tax and theres columns for HST and GST and exempt when it asks for my amounts not sure which box to put it in
This was super helpful, thank you! I refiled my 2023 and 2022 returns and that saved me!
Glad it helped!
Thank you for sharing!!
Thanks for watching!
@@RealEstateTaxTips question about the new home office expenses, if I have my own small corporation and hire myself for consulting services, providing remote services exclusively from home, and claiming expenses such as rent, internet, etc., with reimbursement from my corporation, do I still need to fill out any new forms according to the new policy?
Oh my God, such good information and explained so well. Thanks for doing this video.
Glad it was helpful!
That was an amazing video. This information is very hard to find and you explain it so well. Thank you. I just have one question. Can we claim Renter/Tenant Insurance if we work from our rented apartment as a salaried employee. I already have T2200 etc. Thank you.
Hi! Do you need to fill out both the T2200 and the T777 if you're a salaried employee?
What if part of the yearly earnings is salary and the other part is commission? How would the expenses apply to that scenario?
i work in the oilfield and get paid kms and a subsistence to work do i need to claim fuel and expense's becuase i do not want the hassle ?I did not keep very good books is why i ask further more do i need to submit the t2200 i received?thnx
If you own a condo and pay a maintenance fee monthly that includes all utilities (with no breakdown), how could you include it on the T777 form, and is it even eligible if I somehow got the breakdown from my condo corp?
Hi, I am confused. There is a box that says electricity, heat, water, home internet access fees and other one says Home Internet. Is this information duplicated? Thanks
Question on another topic - Can I deduct CFA exam fees if my job requires this designation? There is no T2202 for CFA as it is not a Canadian school. and how about study material?
Perfect timing for this clip information. Very helpful. Thanks Cheryl
Glad it was helpful!
My city utility bill includes Water, Sewer, Garbage, Green Waste and Recycling. Can I claim all of them, or just the Water portion? Thanks.
Highly appreciate your efforts, need a piece of advise, can the same office space expenses be claimed for employment expenses and business expenses, I have T2200 from my employer and also have my own business which I operate from the same area allocated in my home
Can i claim the rent for full year or the rent only for home office space for work from expenses. Please answer thank you
Hey Cheryl! Your video was really helpful, I own 2 rental properties and I claimed all my rental expenses . My question is that cca and rental expenses are same thing or is it different?? I didn’t check mark on cca when filing taxes but I claimed all my rental expense
No, they are not the same. CCA is a way to claim depreciation expenses on the rental properties. CCA is optional too, some people choose to claim or not claim it. That’s bcos, it works like RRSP, whatever CCA you claim now, you pay back in the future whenever you sell the house.
Great info. Just curious if two persons work from the same home but use different sections of the house. The eligible costs that are common like utilities and internet are they just split in 2 for each person or only the person that pays those bills can claim the full amounts?
If you have a dedicated office, you would be able to prorate based on the size of your individual dedicated office space. Just be mindful the % you are deducting, so as not to jeopardize your primary residence exemption
Does this work for Hybrid work?
Wonderful explanation, Do I need to submit the invoices of office supply and wifi?
That's only required when CRA audits you.
I worked at home more then 50% of the time for 4 consecutive weeks (January) but only 40% of the year (2 days a week) the rest of the year. does that allow me to claim all the months of 2023?
Hi, thanks for making this informative video. My employer have provided t2200 with 100% performed empolyment duties at home. I paid rent for a condo for $1770 per month. Do I have to use monthly or annual amount of $20.8k in wealthsimple tax for other home expenses section? And can you advise if my husband become PR of Canada in sept 2023 but left country after two weeks and he lives in USA. Will he consider non resident or resident of Canada ?
For commission employees, does that include employees that have a base salary and commission ie sales person, or do they mean 100% commission employee ie a real estate agent?
It includes people who earn a base salary and commission
Real estate agents are generally considered self-employed. Most are not considered employee
Hi Cherry, Thank you for the informative video. For the beginning 6 months, i rented a condo from a family member and paid rent & utilities every month (etransfer) but had no lease agreement. So can i still claim? Plus there was 3 of us living together and equally shared all rent & utilities. so how do we calculate those.
Please schedule a meeting with my team to review your individual situation so that we can provide guidance based on the facts
I am sending my return via mail ; would I need to send supporting documentation ( floor plan , internet bill etc ) for Work from Home with return or will furnish when asked ?
10:26 I think this video is only correct and not misleading if you are assuming the tax payer worked 24hrs everyday for the entire year. Otherwise 40hrs per week, they can only claim CAD$164.22 and NOT CAD$690!
You are wrong and she is correct. When declaring your workspace you have two options: dedicated or shared. In her case this is dedicated which means the space is only for work 100% of the time and hours worked is irrelevant. If the space is shared then that’s why you need to clarify how many hours that space is used for work. Hope that clears it up for you.
What about rental property income with no employer.
If i want to move into apartments would you recommend a 2 bedroom or one-bedroom (its just myself). Would I get a bigger write off with a two bedroom?
Amount of write off goes back to the fact - the % used for home office.
I rent an ensuite room and i have taken measurements of it. In the home size, i will put the room size right? And for the workspace it will be part of my room that is being used for workspace, right?
Home size is total home so all the other spaces like living room, kitchen, etc. They are trying to calculate what percentage of your home is dedicated to working. If this isn’t a home you are renting then I suppose this form isn’t for you. I would suspect this is the equivalent of renting an office.
I didn't get the Home Internet expense.
It was in the 1st row, and in the 4th row as well. Can you clarify this?
You can deduct home office % x your internet expense
What about self employed individuals working from home? They can use their mortgage interest for deduction right?
If you are claiming the income on the T2125 than yes you can as outline in Part 7 of that form. For a more in depth review of what you can and cannot claim, I would recommend you schedule a call with my team.
Very helpful. Quick question for someone working Remotely for a company outside of Canada that cannot issue a T2200 form? Can home office expenses still be claimed?
If you ever get audited, first thing they ask for is T2200.
This is a very informative video, thanks for this!! I have one question on the T777. The example on this form itself slightly contradicts your formula (I prefer yours) For a salaried employee the sum example (40hours / 168 hours a week) x 12% = 2.9%. So total example sum is $14 400 x 2.9% = $417.60. By the logic on this video it would $14400 x 12% = $1728. Am I missing something?
The calculation changes depending on if your space is dedicated or shared. If it’s shared you need to calculate how many hours that space is used for work. If it’s dedicated then that space is 100% for work which is why it’s a percentage of your home.
Since I am renting, I am confused as to how do we calculate the house size, do we count the upper levels as well? Or only the lower level? Do we also calculate the basement?
You only need to calculate your portion of the house. I submitted a house plan so the entire house dimensions are shown and then I highlighted my rental area.
@@Swayze_S.L I don’t have a house plan that’s why I am confused as to how do I measure the house size. Since to calculate what percentage of my portion is compared to the entire house , I need the house size. So just want to confirm whether upper level also count in house size??
Question on monthly phone bill for salary based employee, can it be deductable? If yes, 100% or need to be prorated? Thank you so much.
Ideally you need your employer to specify that they need you to use your cell phone for employment purpose on T2200. And again, because it's personal cell phone, you will still need to prorate the deduction
What if your employment agreement had remote work on there? Do you still have to get them to give t2200
Yes
Very well explained. In your example where the calculated deduction is $690. If you owed $690 after doing all your taxes would that wipe away the amount owing? What if you were getting a refund would that increase your refund by $690?
Deduction is offset against the taxable income, and the amount you will save is your marginal tax rate x the deduction. If you owe $690 as taxes, by deduction $690 expense and say your marginal tax rate is 30%, you will only be able to save $690 x 30%. You will still have tax payable
I live in a condo with my flatmate, who's name is on the lease. I etransfer him the money so can i still apply for rental deduction if my name is not on the lease but have proofs thorugh etransfer every month.
I would get the name on the lease... to be safe. Or sign a different lease with your roommate
I live in a rental unit. Can I mention the total yearly rent paid in the "other expenses (rent, etc)" section?
Yes, she mentioned this several times. Though it appears you can’t deduct rental insurance unless you’re a commission based employee.
Hi there, this video is super helpful but I have a question. What if you were on a full-time contract who was required to work from home 60% of the time? Are you still eligible for this WFH expense deduction?
You would fail the eligibility since it has to be more than 50%. There is another criteria if you did do more than 50% for a certain time period in which you can expense for that time period.
Sorry I'm a little confused... I have T2200 from my employer. Do I need to download and fill T777 by myself?
The T777 is attached to your T1 income tax return when filing - if you have eligible employment expenses that your employer doesn’t reimburse you for. And yes, you fill it out yourself (or your accountant).
Thank you!@@AbdulElTawil
Yes
I live in a shared house and each of us got private rooms and I am paying the rent only for my private room and using about 50% of the room to work from home. In this case, can I claim it and would I still need to get a floor plan?
You still need to meet all the other criteria - and it is difficult to say you use it 50% of the time. You will need to use the "time used for remote work purpose" - if you work 8 hours a day, at max you can claim is 30%
where is rent int T777 @11:15
I have 60% of the time as a work from home, and I have the 2220 from my employer, and a dedicated space in my home that I use exclusively for work. however I can’t find where or how to inform to the CRA the exact amount of days/ hours that I have actually worked from home, is there such a line or section to put this? If there’s not such a line to enter this information, do I have to apportion the amount of the expenses before entering the actual amount in the 777 form? This is basically the only thing missing from my entire statement. Thank you so much.
It’s assumed if you are filing this form you meet the eligibility requirement. In terms of time if your space is shared then you add hours worked. If the space is dedicated then you don’t add hours worked.
So if I'm not REQUIRED to WFH, but I choose to 2/5 days a week and all of July/August - am I able to deduct expenses?
If you employer provides you with the T2200 then yes you can
How do you obtain a floor plan if the house is old and you aren't the first owner?
Draw it by hand? Hire someone if you want to be exact?
Please help me with the following question. What if the person works from home (40 hours per week), has a form T2200, and deducts all related expenses in T777, but also uses the same office for business (20 hrs per week). Can he/she claim office expenses again in T2125, as part of business expenses?
You cannot "Double Dip" for the Office in the Home, you can however split the total amount between the 2 businesses.
Is this only for Canada? Or can we use it in the Unites States?
Only for Canada. Thanks
Can we deduct principal portion of the mortgage?
No. No mortgage is deductible as home office expenses if you are deducting it as your employment expenses
Can I claim home Office Expenses if I have already filed my taxed for this year and received Notice of Assessment?
If yes how can I do it please guide?
T1 Adjustments
With regards to real estate a local accountant told me you must own at least 2 rental properties (which i own one) and cannot claim home office expenses.. and you cannot claim the leased vehicle i have.. the property was also my previous primary residence.. further the accountant has indicated i must claim the house, if i were to sell, at the cost i bought in 2006 and i lose all equity which is more than a 100k when i started renting in 2017 and over covid the real estate market dropped by 50k, but i would still owe on over the 50k with capital gains essentially eliminating any increase in value in the entire 11 yrs i ever lived in the house.. so idk if its correct or this country has turned into a scam artist.. 🤷🏼♂️😒😕
My T2200 for the employer reimbursement part is yes but it doesn't list any items. Can I still fill T777 ?
If you employer reimbursed you for any expenses related to the work space in your home those would be used to reduce the claim, if they checked yes they should have filled in the specific dollar and type of expense that you are being reimbursed for
@@RealEstateTaxTips they checked yes but they doesn't list any items(cuz I didn't claim any) in this case can i still claim my rent,hydro?
Im
Full time stock trader work from home plus few rental properties. Any video can you make please?
Thanks
Yes there's another video on how to deduct home office expense - they are for self employed individuals and people who own properties.
@@RealEstateTaxTips ok thanks so much to make those amazing videos, lots of information.
Great video thank you, A quick question. I use 10% of my home for a home office, does claiming home office expenses jeopardize my Capital - Gains exemption if I sell my home next year? What scenario would cause that to be jeopardized when claiming work from home/home office expenses?
According to the snippet you showed, you are only required to work 50% of the time for 4 consecutive weeks, not for the entire year. That wording is a bit confusing.
Can a Salaried employee fill T2200 form ?
Your employer would have to complete the T2200 form for you
Moved from Ontario to Alberta, my employment is 100% remote, sold my house in Ontario, can I claim moving expenses, RE commission paid etc
You may need to ask an accountant or tax professional, as each situation is unique. But here’s a guide on claiming moving expenses: www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-21900-moving-expenses.html
Can be a challenge... you aren't really "required" by work to move.
Meaning can I claim some of my moving expenses?
Do you need to see the first video first?
How much of my rent can I deduct?
Assuming you can qualify, it is based on the dedicated space you use for your office in relation to the size of your home. % of your home office space x rent is how much you would be able to deduct
Hi, how to contact you directly for consultation ?
Hi ! You can reach out to us here: realestatetaxtips.ca/contact-us/ Thanks
wfh spent should be more than 50% not 50% or more as mentioned here
What's the logic that commissioned-based employees are allowed to deduct property tax and home insurance while salaried aren't?
I don't think CRA has any logic. My guess is that commission based employees need to hustle more and their commissions are variable based on how much they hustle?
Do you know the reasoning that rent can be claimed but costs for mortgage cannot? It doesn’t seem fair.
The mortgage interest can be claimed but not the principal. Principal is on account of Capital, if you claimed the whole amount you would have to pay tax on the home when you sold it.
I am a freelancer, how would this work for me haha :)
"i cant believe what came in the mail today...i got a letter from the CRA ..they want more of my money is all they had to say....but i just wish theyd all just go away...''
They will as long as your provide your documentation. Good luck.
Those are lyrics of a song I wrote called taxes!!..lol… seriously I realize in order for a fit currency system to function there has to be income taxation my problem is the over complication it’s become the confusion and the extortion tactics the CRA will use don’t forget extortion is a crime and they do it all the time and get away with it
*Fiat currency system
"it comes in quickly from the eastern sky...its time to get our fleece shorn is the reason why...but we are dumbed down with all our aches and pains.. robbing us the ability to use our brains....well each day im workin to the bone i grind a million axes forget your life you aint no good i just make enough to pay my taxes!!....t.t.t. taxes!!"
I cant move out of this prison called Canada
I'm sorry to hear that. Good luck