Business Use-of-Home Expenses
Yes, you can do that. That is one of the many perks of having a business – being able to deduct expenses that were incurred to earn business income.
As long as you meet one of the following conditions, you can deduct expenses for the business use of a work space in your home:
- It is your principal place of business.
- You use the space only to earn your business income, and you use it on a regular and ongoing basis to meet your clients, customers or patients.
So what maintenance costs can you deduct? You can deduct part of your maintenance costs such as heat, home insurance, electricity and cleaning materials. You can also deduct part of your property tax, mortgage interest and capital cost allowance.
To be able to calculate the part you can deduct, use a reasonable basis such as the area of work space divided by the total area of your home.
If you rent your home, you can deduct the part of the rent and any expenses you incur that relate to the workspace.
Do you need assistance in finding out how much of your home expenses you can deduct? Contact KD today!