Work-space-in-the-home expenses

I would like to bring your attention to those individuals who are employed and would normally be working at your employers place of employment and are now working at home due to the pandemic. CRA allows you to deduct expenses you paid in 2020 for the employment use of a work space in your home, as long as you had to pay for them under your contract of employment. These expenses must be used directly in your work and your employer has not reimbursed and will not reimburse you. As an example, you can deduct the part of your costs that relates to your work space, such as the cost of electricity, heating and maintenance.

You must meet one of the following conditions:

  • The work space is where you mainly (more than 50% of the time) do your work
  • You use the work space only to earn your employment income. You also have to use it on a regular and continuous basis for meeting clients, customers or other people in the course of your employment duties.

If you meet any of those conditions I would suggest to you to obtain a T2200, Declaration of Conditions of Employment form from the Canada Revenue Agency. Have your employer complete and sign it and return the form to you for your records. Doing this now rather than at tax time can save you headaches later. There are no consequences to the employer (providing they are truthful).

If you would like more information or the form please contact us by telephone 1-866-467-2883, e-mail agate@vianet.ca or web https://agateconsulting.ca