Business Use of Home Expenses - CRA comments on whether certain expenses are deductible in Folio S4-F2-C2.

On January 31, 2017, CRA released Folio S4-F2-C2, Business Use of Home Expenses, directed at claims for such expenses from business income. The Folio notes that such expenses require that either the work space be the principal place of business or that it be used exclusively for business, and for meeting clients, customers or patients on a regular and continuous basis.

The Folio discussed, for example, CRA’s interpretation of deductible expenses apportioned to business use, expenses falling outside these provisions such as office supplies, telephone and internet, and the requirement to carry the expenses forward where a business loss would result from their deduction.

For further information see Video Tax News Monthly Tax Update Newsletter, Issue No. 427