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Home Office Expenses, Can You Claim Them? and What Can You Claim?

NOTE: This article concerns home office expenses for a business, not an employee working from home.

 

Owning a small business can have several perks, one of them being the ability to claim the cost of operating from a home office. In effect, some of your living expenses can become a deductible cost for your business.

There are of course a couple of conditions. To be able to claim home office expenses, you must meet ONE of the two following conditions:

1. It is your principle place of business;
or
2. You use the space only to earn business income, and you use it on a regular and ongoing basis to meet clients, customers or patients.

Point #2 is a very sticky one; the space must be a distinct and separate area of your home and cannot be used for any other purpose. In other words, using the kitchen table twice a week for processing paperwork does not entitle you to claim home office expenses.

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