Home Office Deduction without receipt

Question

2399 viewsNovember 26, 2019Business Tax

0

Anonymous Posted November 22, 2019

While filing my taxes next year as a sole proprietor, I am considering claiming my Home Use of Business Office Expense (portion of my rent).

My challenge is that my roommate is on the apartment lease (I found this rental via kijiji a while back) & I just pay him via cheque. There’s no receipt or any written agreement between us.

In this scenario, I am wondering:
– If I should claim my Home Use of Business Office Expense.
– If I do and get audited by CRA, how would I go about handling the audit.

Appreciate the insights, thank you.

1 Answer

score 0 · Answer 1 · 2019-11-26T14:36:48+00:00

To determine the amount that you can deduct in respect of rent paid in part for the use of a home office, follow these steps:

1. Multiply the rent + utilities paid by 50% (since you are responsible for only 1/2 of these costs).
2. Multiply the amount calculated in step 1 by the % that your home office space takes up the entire living space of the apartment. The resulting amount can be deducted from income.

Home Office Deduction without receipt

1 Answer

Mississauga's Thought Leader

REQUEST A FREE CONSULTATION

Pin It on Pinterest