Can I Claim Home Offices Expenses for my Small Business
Tracking accurate home expenses also requires good judgement. Entrepreneurs who run businesses out of their home need to pay particular attention to their deductions. You may be able to claim a proportion of expenses like utilities, insurance, rent or property taxes, amongst others, if you run a business exclusively out of your home. It is crucial to ensure you have receipts for your expenses, as well as an explanation for the rationale you used for allocating a portion of the costs to your home office.
This is all particularly important if the CRA calls; disorganization, finding incomplete records, or having none at all can result in a loss of deductions the business would otherwise be entitled to. Another important tip related to home business expenses; when determining the proportion of your home used for business, consider whether you use business storage space outside of your main office, because part or all of that space might also factor into the calculation.
