If you’ve ever wondered about deducting home office expenses in Canada, you’re not alone. My real estate and healthcare clients often have the mistaken belief that a large portion of their home can in fact be deducted. In this video, I cover what you can and can’t claim, how much to expect back, and how to maximize the deduction if you’re incorporated. It’s not a huge amount, but it’s a deduction you don’t want to miss.
Video Transcript: Deducting home office expenses
Home office expenses for businesses may not be the be-all and end-all of tax deductions, but still should not be ignored. Where we’re allowed to claim them, you want to be able to accumulate your interest expense — which may be a little higher than desired right now — utilities, insurance, property taxes, repairs and maintenance, etc.
You can certainly take a look at our checklist for reminders of those items you may be able to deduct.
The big catch? Most people are often disappointed when they realize they have to prorate the total expenses they’ve paid through the year based on square footage or the number of rooms in the house. And so they may only typically be getting approximately 10% of that number.
But where you’re allowed to claim it, it’s certainly better than nothing.
Unquestionably, the majority of our clients claim this through their corporations. If we have to do it personally, again, it’s better in your pocket than the government’s.
I’m George Dube, saving the world from tax, one bow tie at a time®.
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Check out the next video in the series.
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Resources
For additional resources related to how to maximize tax deductions, see:
- 2025 tax season tips: How to save more this year
- Personal Tax Checklists
- Is my REIN membership tax deductible?
- Deducting professional dues: Are you missing out on tax savings?
- Is my lunch tax deductible?
More questions?
Still have questions? I want to help you Do wonderful things®, so please contact me today.
Remember – circumstances are unique! This information is summary in nature. Seek out advice from your tax advisor about your specific situation.
