If you use part of your home for business, that space is a deduction on your Line 9945 of T2121E form. The deduction you can claim is limited to the business expenses portion, personal use is non-deductible. You can deduct the business portion of the mortgage interest, but no
...t the principal. Deducting Capital Cost Allowance (CCA) has to be taken into consideration since the CCA you claimed will affect the Adjusted Cost Base (ACB) of your home. It will have an impact on the capital gain, when you sell your home later. If you rent, the business portion is deductible.
Allowable expenses are deductible up to the reported Net Income Before Adjustment. It cannot create a business loss. If you have a Net Loss Before Adjustment or remaining deductible expenses for the year (after maximum deduction), it can be carried to the following year. Form you need: T2125, Statement of Business or Prof Activities, CRA website: http://www.cra.gc.ca/
__________________________________________________________
Earla Riopel, BSCom(USA), DipAcc(UBC)
No comments:
Post a Comment