I write for clients, but I do not meet them. There is a certain amount of communication with them, and I think it will pass. It is intensive communications.
@@RealEstateTaxTips It was. I was specifically looking for doing overall repairs to the household albeit in a current expense fashion. Specifically to see if those could be expensed through the proportion calculation of the household fraction of the home
If using a property mgmt company and they're purchasing parts/services and adding it to the PM invoice, could we report it as just a PM expense or does it need to be broken out into different categories?
If PM expense is high, you might get flagged for audit. You don't have to break it down but for your own record keeping an analysis, maybe beneficial to break it down.
This is great hanks for sharing all the info. Tho question what if on a given year you made no income at all due to slow market but you still spent money on advertising, software subscriptions, even tutorials and such to ramp up your business to expand the service it can provide, can you still write off some of that?
Brilliant video and fantastic channel 🤩 Much prefer your “own” creative examples (ie: real estate office vs home office) versus those that the CRA utilizes! Your channel and content are extremely underrated as we speak ... however we see this building VERY FAST, just a matter of time. Keep at it and we look forward to your future videos! Thank you kindly 🙏
If you're claiming through your corporation, you would also need to charge the same amount from your person to the corporation's name. You would have to report the income and deduct the corresponding expenses on your personal tax return.
If claiming business use of home expenses through a corporation, on what form on your T1 can you claim the expenses to offset the income? Does it fully offset the income? Also would this have any other implications, such as affecting your ability to claim the principal residence expedition on the entire property? What about HST?
question: Our Primary home is in Hope BC. My wife works in town as a Inc artist for film. We have had to rent a home in Coquitlam when Natalie works. Would we be able to use per diem for hotel expense.
If you are truly renting a hotel to work at Coquitlam, you would likely be allowed the deduction. But if you have a second home, it's arguable and CRA may not agree with your argument to deduct the expense. It's more a question of facts as well...
Question. I am not currently working and I have rental income only. Can I deduct and use my principal place for home office. I use one room for office only.
My real estate agent gave me a part of the commission he earned when I purchased my primary residence. Can I reduce the cost of my purchase by this amount or have I to pay tax on it as commission earned (T4). (Example: Purchase price + land transfer tax + lawyer fees - commission = net cost of primary residence). Coz capital gains is tax free on primary residence eventually. I am a salaried employee.
Depending on what you have received, typically if it is directly related to the purchase, we adjust the ACB of your property. But if you are issued a T4A, it can get quite complicated.
@@RealEstateTaxTips I was of the opinion that it should go to reduce ACB. But the agents accountant mentioned that he would issue a T4, which I agree with you would not be beneficial and also complicated. Thank you so much for taking the time to clarify and your videos are so much appreciated. God bless you and your team for all they do to support the real estate investing community.😊
1. It might not fly with CRA - hard to claim that you are operating a business at home...you can claim a portion of your phone though. Again, Canadian system is an honest system. You won't know until you get in trouble. 2. Many people operate a youtube channel for fun - if you are doing it for fun, then it isn't really for generating income and so it won't work... On the flip side, if you are generating income, then yes, you're allowed.
@@RealEstateTaxTips thank you. When you say you must make income, does that mean you must also make a profit? Or would it be suspicious from CRA if you're not making money and breaking even? I'm looking at side business, and may not be profitable for a while, i.e. youtube. But be nice to start collecting gear, camera, etc. Can you claim those expenses 2 years later, once your business starts generating income?
What if you are a full-time salary employee for a company that requires you to work from home and you use a room in your home as your full time office space? Am I still able to claim home office expense on my taxes even though it's not my business but it is my principle place of business.
Provided that you have T2200 form prepared by your employer, you might be able to deduct some expenses, but not mortgage interest and property tax. The type of expenses you can deduct would be dependent on what you earn from your job (commission income vs traditional employment income)
Hi.. Very informative video. Awesome work. Had a question.. Can we use Business credit card or Business Incorporated bank account to pay below monthly home expense bills? corporation's address is the same as the owner's residential address, Cell phone Internet Auto & home insurance Enbridge Gas Home Electricity Home Water Home security Property Tax Mortgage payments?
You can - but these should be adjusted and being added to your shareholder benefit - since not your entire home is used to earn your incorporated business income
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What about the home office cost like desk, chair, computer .. is it a deductible business expense?
Great job
I write for clients, but I do not meet them. There is a certain amount of communication with them, and I think it will pass. It is intensive communications.
What if you do not have a mortgage but still operate exclusively from your home office.
Excellent video, very thorough and just what i was looking for
Glad it was helpful!
@@RealEstateTaxTips It was. I was specifically looking for doing overall repairs to the household albeit in a current expense fashion. Specifically to see if those could be expensed through the proportion calculation of the household fraction of the home
Thank you, very informative. Are you currently accepting new clients?
Hi ! You can reach out to us here: realestatetaxtips.ca/contact-us/. Thanks
What about Air BNB in n the basement?
If using a property mgmt company and they're purchasing parts/services and adding it to the PM invoice, could we report it as just a PM expense or does it need to be broken out into different categories?
If PM expense is high, you might get flagged for audit. You don't have to break it down but for your own record keeping an analysis, maybe beneficial to break it down.
@@RealEstateTaxTips Awesome, that's what I'm doing currently. Thanks for your response and all the content you provide!
Maid can be deduction under maintenance of a dedicated space home office.
This is great hanks for sharing all the info. Tho question what if on a given year you made no income at all due to slow market but you still spent money on advertising, software subscriptions, even tutorials and such to ramp up your business to expand the service it can provide, can you still write off some of that?
Yes you can claim those expenses if they are related to the running of the business
Brilliant video and fantastic channel 🤩 Much prefer your “own” creative examples (ie: real estate office vs home office) versus those that the CRA utilizes!
Your channel and content are extremely underrated as we speak ... however we see this building VERY FAST, just a matter of time. Keep at it and we look forward to your future videos! Thank you kindly 🙏
Glad it was useful.
Quite informative
How do record the Business use of home office expenses in the corporation return (T2)?
If you're claiming through your corporation, you would also need to charge the same amount from your person to the corporation's name. You would have to report the income and deduct the corresponding expenses on your personal tax return.
If claiming business use of home expenses through a corporation, on what form on your T1 can you claim the expenses to offset the income? Does it fully offset the income?
Also would this have any other implications, such as affecting your ability to claim the principal residence expedition on the entire property? What about HST?
question: Our Primary home is in Hope BC. My wife works in town as a Inc artist for film. We have had to rent a home in Coquitlam when Natalie works. Would we be able to use per diem for hotel expense.
If you are truly renting a hotel to work at Coquitlam, you would likely be allowed the deduction. But if you have a second home, it's arguable and CRA may not agree with your argument to deduct the expense. It's more a question of facts as well...
Question. I am not currently working and I have rental income only. Can I deduct and use my principal place for home office. I use one room for office only.
If you meet the criteria... you should be able to use home office expense against your rental income...
@@RealEstateTaxTips thank you taking time to respond.
My real estate agent gave me a part of the commission he earned when I purchased my primary residence. Can I reduce the cost of my purchase by this amount or have I to pay tax on it as commission earned (T4). (Example: Purchase price + land transfer tax + lawyer fees - commission = net cost of primary residence). Coz capital gains is tax free on primary residence eventually. I am a salaried employee.
Depending on what you have received, typically if it is directly related to the purchase, we adjust the ACB of your property. But if you are issued a T4A, it can get quite complicated.
@@RealEstateTaxTips I was of the opinion that it should go to reduce ACB. But the agents accountant mentioned that he would issue a T4, which I agree with you would not be beneficial and also complicated. Thank you so much for taking the time to clarify and your videos are so much appreciated. God bless you and your team for all they do to support the real estate investing community.😊
Can you have a home office if:
1. you do uber eats/ door dash /instacrt?
2. You operaete a youtube channel?
1. It might not fly with CRA - hard to claim that you are operating a business at home...you can claim a portion of your phone though. Again, Canadian system is an honest system. You won't know until you get in trouble.
2. Many people operate a youtube channel for fun - if you are doing it for fun, then it isn't really for generating income and so it won't work... On the flip side, if you are generating income, then yes, you're allowed.
@@RealEstateTaxTips thank you. When you say you must make income, does that mean you must also make a profit? Or would it be suspicious from CRA if you're not making money and breaking even?
I'm looking at side business, and may not be profitable for a while, i.e. youtube. But be nice to start collecting gear, camera, etc. Can you claim those expenses 2 years later, once your business starts generating income?
I am a regular employee that go to work everyday but I rented one of my room can I have a deductive?
You'll be what's called house hacking and you cant deduct the proportional rental expenses - not home office expense though.
What if you are a full-time salary employee for a company that requires you to work from home and you use a room in your home as your full time office space? Am I still able to claim home office expense on my taxes even though it's not my business but it is my principle place of business.
Provided that you have T2200 form prepared by your employer, you might be able to deduct some expenses, but not mortgage interest and property tax. The type of expenses you can deduct would be dependent on what you earn from your job (commission income vs traditional employment income)
@@RealEstateTaxTips It would be just traditional employment income. i think my employer would have no issues preparing a T2200 form.
Hi.. Very informative video. Awesome work.
Had a question..
Can we use Business credit card or Business Incorporated bank account to pay below monthly home expense bills? corporation's address is the same as the owner's residential address,
Cell phone
Internet
Auto & home insurance
Enbridge Gas
Home Electricity
Home Water
Home security
Property Tax
Mortgage payments?
You can - but these should be adjusted and being added to your shareholder benefit - since not your entire home is used to earn your incorporated business income
😊