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Your
Home Business Deductions
Many women overlook the fact
that a percentage of many household expenses can be written off at tax
time. This percentage is usually determined by the percentage of space
your business occupies within your home.
To determine the percentage
for your home business, you take the total square footage of the living
space in your home and divide it by the square footage of your home office
or workshop space. It is this percentage that you can deduct from your
household expenses.
Of course, there are exceptions
to this. You need to have a separate office space to be able to take the
deduction. If you have a desk set up in the corner of your bedroom or
kitchen, you can't write off the space for your entire bedroom or kitchen.
In Canada, a percentage of
expenses are usually deductable:
- utilities such as water,
electricity & heat.
- home insurance (not to be
confused with business insurance, which is 100% deductable)
- If you own your home, you
can deduct the percentage of your mortgage interest payments and property
taxes
- If you rent, you can deduct
your monthly rent
- repairs and maintenance
to your house.
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