You can deduct expenses you paid in 2014 for the employment use of a work space in your home, as long as you meet one the following conditions:
- The work space is where you mainly (more than 50% of the time) do your work.
- You use the workspace 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.
Keep with your records a copy of Form T2200, Declaration of Conditions of Employment, which has been completed and signed by your employer.
You can deduct the part of your costs that relates to your work space, such as the cost of electricity, heating, maintenance, property taxes, and home insurance. However, you cannot deduct mortgage interest or capital cost allowance.
To calculate the percentage of work-space-in-the-home expenses you can deduct, use a reasonable basis, such as the area of the work space divided by the total finished area (including hallways, bathrooms, kitchens, etc.). For maintenance costs, it may not be appropriate to use a percentage of these costs. For example, if the expenses you paid (such as cleaning materials or paint) were to maintain a part of the house that was not used as a work space, then you cannot deduct any part of them. Alternatively, if the expenses you paid were to maintain the work space only, then you may be able to deduct all or most of them.
If your office space is in a rented house or apartment where you live, deduct the percentage of the rent and any maintenance costs you paid that relate to the work space.
The amount you can deduct for work-space-in-the-home expenses is limited to the amount of employment income remaining after all other employment expenses have been deducted. This means that you cannot use work space expenses to create or increase a loss from employment.
You can only deduct work space expenses from the income to which the expenses relate, and not from any other income.
If you cannot deduct all your work space expenses in the year, you can carry forward the expenses. You can deduct these expenses in the following year as long as you are reporting income from the same employer. However, you cannot create or increase a loss from employment by carrying forward work space expenses.
You can claim the cost of meals and lodging (including showers) on Form TL2, Claim for Meals and Lodging Expenses, if you meet all of the following conditions:
- You work for a trucking company, or for any other employer whose main business is transporting goods, passengers, or both.
- You travel in vehicles your employer uses to transport goods or passengers.
- You regularly have to travel away from the municipality and the metropolitan area (if there is one) where your employer’s relevant establishment (home terminal) is located.
- You regularly incur meal and lodging expenses while travelling away from the municipality and the metropolitan area (if there is one) where your employer’s relevant establishment (home terminal) is located. This means that you must generally be away from home overnight to do your job.
If you meet these conditions, see Meals and lodging (including showers) for more details.
For more information on meal allowances and subsidized meals, see IC73-21, Claims for Meals and Lodging Expenses of Transport Employees.
Even if you do not meet all of the above conditions, you may still be able to claim the cost of meals and lodging you incur in the year. For more information, see Other transport employees for details.
If you are a long-haul truck driver, see Meal expenses of long-haul truck drivers.
If you travel to the United States as a transport employee, see Trips to the United States.
You will need the following:
- TL2(Claim for Meals & Lodging)
- Need all logbooks for 2014, or a detailed summary of all trips that are between over 12 hours but under 24 hours away from their municipality, (claim is at 50%)
- Logbooks or detailed summary for all trips that are over 24 hours. (Claim is at 80% for 24 hours away)
- Separate all trips traveling the United States because they can claim the U.S. exchange (Claim is at 80% for over 24 hours away)
You can claim the cost of meals and lodging when you meet one of the following conditions:
- You work away from home for a railway company as a telegrapher or station agent in a relief capacity, or carry out maintenance and repair work for the railway company.
- You are a railway employee who works away from the municipality and the metropolitan area (if there is one) where your employer’s relevant establishment (home terminal) is located. You also work at such a distant location that it is unreasonable for you to return daily to your home, where you support a spouse or common-law partner, or a dependant related to you.
If you meet one of these conditions, see Meals and lodging (including showers) for more details.
You must reduce your claim for meal and lodging expenses, by any non-taxable allowance or reimbursement you received or are entitled to receive from your employer.
Your employer has to sign Form TL2. You do not have to send this form with your return, but you should keep it in case they ask to see it later.
We need the following information:
- Vehicle expenses such as: Gas, Maintenance & Repairs, Insurance, Licensing, Vehicle Purchase Agreement if they purchased a vehicle in 2014 or Lease Agreement if leasing.
- T2202 signed by employer. This will allow them to claim there vehicle expenses for out of town traveling, it will also indicate the travel allowance they received from their employer.
- TL2(Claim for Meals & Lodging) for them to claim their out of town meals.
- We need a Trip Summary Sheet (also called employment expense sheets) for the time period they worked out of town.
- Calendar detailing all trips.
Rental Income = Revenue generated from rental units during a fiscal year. This includes any deposit or last month rent collected from your tenants.
You can deduct any reasonable expenses you incur to earn rental income. The two basic types of expenses are current expenses and capital expenses.
For more information on what we consider a current or capital expense, see Current expenses or capital expenses.
If you are modifying a building to accommodate persons with disabilities, buying an older building, or encounter other situations, see Capital expenses – Special situations.
Some expenses your incur are not deductible. For more information see Expenses you cannot deduct.
The following is a list of expenses that are deductible:
Any cost incurred to the renting of the units may qualify against the revenue generated as rental income.