Government of Canada Announces New Rules for Home Office Expenses

January 21, 2021

Due to the COVID-19 pandemic, millions of Canadians have made the switch to working from home in 2020. For some Canadians, this means increased spending on utilities such as heat and hydro. Many Canadians have also upgraded their internet plans to accommodate increased internet usage and daily virtual meetings.

According to the fall fiscal update, taking the increase in home office expenses into consideration, Canadians will be able to claim up to $400 in home office expenses without the need of detailed expense records.

With many Canadians having to convert their kitchens, dining rooms, and bedrooms into home offices. This unusual use of space has created confusion on what can and cannot be claimed as a home office expense.

Expenses you can claim:

  • Rent 
  • Utilities
  • Maintenance costs of your office space
  • Office furnishing
  • Stationary
  • Stamps

Expenses you cannot claim: 

  • Mortgage interest
  • Property tax
  • Home insurance

Home office expense claims are best handled by tax professionals. Do you need help with your tax return? Our dedicated team of experts are here for you.

For more information, visit

Published by Elite Accounting Inc.

© 2020 Elite Accounting

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