Home Office: What You Can Claim on Your Taxes

Working from home raises many tax questions. The Canada Revenue Agency (CRA) has specific rules about what home office expenses employees and self-employed individuals can claim. Understanding your eligibility and allowable claims can help you optimize deductions and avoid common filing mistakes.

Who Can Claim Home Office Expenses?

Both employees and self-employed individuals may qualify to claim home office expenses, but the rules differ between the two groups.

Employees

Required to work from home: Your employer must require you to work from home during the tax year.
CRA methods: You may qualify under the temporary flat rate method (for specific past periods) or the detailed method requiring a signed T2200 form.

Self‑Employed Individuals

Business owners operating from home can claim business‑use‑of‑home expenses proportional to the portion of their home used for business activities.

What Expenses Can You Claim?

Utilities such as heat and electricity
Home insurance (proportional)
Property taxes (proportional)
Mortgage interest or rent (depending on employment status)
Maintenance and minor repairs
Internet access costs (proportional)
Office supplies used exclusively for work
Business‑related phone expenses

Major renovations, mortgage principal payments, and personal expenses are generally not claimable.

Calculating the Business‑Use Portion

The CRA requires a reasonable allocation method when calculating home office deductions.

Workspace area ÷ total finished home area × eligible expenses = deductible amount

Shared spaces such as kitchen tables must also consider the amount of time used for business purposes.

Documentation and Recordkeeping

Keep all receipts and invoices related to expenses.
Maintain calculations showing how you determined the workspace percentage.
Employees using the detailed method must keep signed employer forms (T2200).
Retain documents for the CRA retention period (usually six years).

Why Professional Guidance Matters

Home office expense claims involve detailed CRA rules and recent updates. Working with a professional accounting firm helps ensure your deductions are accurate, defensible, and optimized for your situation.

Partnering with Lismont Professional Corporation ensures your filings remain compliant while maximizing legitimate tax savings.