6 Home Based Business Tax Deductions You Don’t Want to Miss
- Monday, 15 August 2011
2) Insurance – Home based insurance qualifies as a tax deduction, just like any other commercial insurance premiums. A portion of the cost of home insurance may also be written off if your home based business meets the conditions for claiming business-use-of-home.
3) Office Expenses – Make sure to distinguish between office expenses and depreciable assets. Things like office supplies which include, pens, stamps, paper clips, etc would be considered an office expense. Things like filing cabinets, printers, furniture, etc, would be considered as depreciable assets and fall under the rules of Capital Cost Allowance.
4) Mortgage Interest and Property Taxes – If you have a mortgage on your home, and have a home office, you can claim the mortgage interest under the Business-use-of-home expenses rules.
5) Other Business-Use-of-Home Expenses – These include heat, electricity, water, maintenance, telephone and internet connection. A portion of these costs can be allocated to your business and claimed as a business expense, provided your home office meets the criteria for business-use-of-home deductions.
6) Carry Forward of Unused Work Space in Home Expenses-If you have more expenses than income for your home based business, you will have what CRA calls unused Work Space in Home Expenses. These amounts can be carried forward into next year, to be used against business income.