Home Office Cost

09/16/2022

Employees:

For an employee to claim home office cost deduction, the home office must be specifically equipped for the purpose of the employee’s trade, regularly and exclusively used for such purposes, and:

  • if the remuneration earned is mainly in the form of commission or other similar variable payments, then home office cost can be deducted if the duties of such employee are mainly performed otherwise than in an office provided by his or her employer, or
  • If the remuneration earned is not mainly in the form of commission or other similar variable payments, then home office cost can be deducted if the duties of such employee are mainly performed in such home office

Independent contractors:

Taxpayer not earning income from employment can deduct home office cost incurred in the production of income from a trade being carried on that is not of a capital nature. However, private and domestic expenditure cannot be deducted.


Disclaimer: The information contained in this article is a summary of legislation and budget proposals proposed by the Minister of Finance. We suggest that you do not act solely on material contained in the article as the nature of the information contained herein is general and may in certain circumstances be subject to misinterpretation. In addition, the budget proposals may not include all legislative adjustments which could be made in the near future. Consequently we recommend that our advice be sought when encountering these potentially problematic areas. While every care has been taken in the compilation of the article, no responsibility of any nature whatsoever shall be accepted for any inaccuracies, errors or omissions.