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simraj

where do we file our home office expenses

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1.

my wife & I have a partnership company in out names and we have a professional contract by an online company based in Manitoba ( we live in Calgary). We incur a lot of internet costs (almost 100% of our monthly internet bill) related to our contractual jobs withthis online company. 

If we apportion only 20% of our house to the home office, and then put in the expenses,utilities property tax etc), UFile approtions only 20% of our costs to the company home office. Thisis fine. 

But we wish to charge 90% of our internet costs to the home office .. how do we do this.. (if we enter this cost as Others, it too gets prorated at 20%)

2.

How/Do we report (if at all) universal child care since our MyCRA login did not have (this year) RC62

 

Appreciate any help!!

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Hello simraj,

Home office expenses

If you operate your business from your home office, you can deduct certain expenses from your business income.

Before entering your expenses, you must determine the portion of your home that is used for your business.

To enter your expenses, please follow these steps:

1- In the "Left side menu on the Interview tab", select the page "Home office expenses" under the item "Self-employment income".

2- Enter the portion (%) of the home that is used for personal purposes.

3- Enter your home office expenses in the appropriate fields.

If you want to enter additional expenses that are not listed in the "Home office expenses" page, such as rent paid, enter the amount in the field "Other home office expenses - specify".  Enter a description and the amount.

The amount eligible for your home office expenses will be carried over by the program to line 9945 of federal form T2125 and, for Quebec residents, to line 258 of form TP-80.

NOTE :

The amount you can deduct for Business-use-of-home expenses cannot be more than your net income from the business before you deduct these expenses. In other words, you cannot use these expenses to increase or create a business loss. However, you can carry to subsequent taxation years any portion of the amount that you cannot deduct for the given taxation year because of this limit.

For more information regarding home office expenses, please consult the following links:

For the CRA: http://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002-business-professional-income-2016.html

Universal Child Care Benefits (UCCB)

As of July 2016, the Canada Child Benefit (CCB) has replaced the Universal Child Care Benefit (UCCB).

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3 hours ago, Antoine7 said:

Thank you, Antonie for your detailed reply. Appreciate it. 

My question now is this. At 20% of area of the house used as a business, we entered all expenses and they got reported prorated at 20% to the appropriate lines. So far so good. Now comes Internet. This is something we need to charge a 90% to our business. But if we enter it as Others, it too would get prorated at 20% and we want to charge it at 90%. Thats where we are stuck. Is there a way we can have some expenses charged at a higher %age than the rest? (Utilities etc getting charged at 20% is fine..but due to the nature of the business, we should be able to charge 90% of this cost to the expense)

Best 

simraj

Hello simraj,

Home office expenses

If you operate your business from your home office, you can deduct certain expenses from your business income.

Before entering your expenses, you must determine the portion of your home that is used for your business.

To enter your expenses, please follow these steps:

1- In the "Left side menu on the Interview tab", select the page "Home office expenses" under the item "Self-employment income".

2- Enter the portion (%) of the home that is used for personal purposes.

3- Enter your home office expenses in the appropriate fields.

If you want to enter additional expenses that are not listed in the "Home office expenses" page, such as rent paid, enter the amount in the field "Other home office expenses - specify".  Enter a description and the amount.

The amount eligible for your home office expenses will be carried over by the program to line 9945 of federal form T2125 and, for Quebec residents, to line 258 of form TP-80.

NOTE :

The amount you can deduct for Business-use-of-home expenses cannot be more than your net income from the business before you deduct these expenses. In other words, you cannot use these expenses to increase or create a business loss. However, you can carry to subsequent taxation years any portion of the amount that you cannot deduct for the given taxation year because of this limit.

For more information regarding home office expenses, please consult the following links:

For the CRA: http://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002-business-professional-income-2016.html

Universal Child Care Benefits (UCCB)

As of July 2016, the Canada Child Benefit (CCB) has replaced the Universal Child Care Benefit (UCCB).

 

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