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My question is: Canadian-specific
QUESTION: Hello,
My job requires me to spend a portion of my time working out of my home. As
such, I was given a tax form T2200 in order to claim expenses incurred from
my home. I was under the assumption that I would be able to claim a portion
of my monthly mortgage payments as well since I am using my home as a home
office. However, I was told that I am not able to claim a percentage of my
mortgage payments. However, if I was renting my home I would be able to
claim a portion of the rent. This doesn't sound right and is somewhat
confusing. Could you please verify if I am able to claim my mortgage
payments if using my home for work purposes. Thanks.
JXXXX XXXXX
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david ingram replies: Your impression was wrong.
Employees do not get to claimn any part of their mortgage interest or property taxes when claiming an office in the home.And, you are correct that if you were renting, you could claim a portion of the rent. Do not blame me, blame parliament.
However, there is a solution. Have your employer change your salary by $1,000 a month. Have them pay $1,000 a month to you (and your wife if it is in joint tenancy) for the rent of your office. Then, you an your wife will fill out a T776 rental schedule and you will get to deduct a percentage of the mortgage interest (not the principal), taxes, repairs and maintenanse, heat, landscaping, etc.
David Ingram of the CEN-TA Group
US / Canada / Mexico tax and working Visa Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 913-9133 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
This question was left at: http://www2.jurock.com/askexpert/ask.asp?aid=121&cid=63
You can check there for more archived real estate and income tax questions.
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