Home Office Expenses: Deduction Tips for Canadian Freelancers
Chosen theme: Home Office Expenses: Deduction Tips for Canadian Freelancers. Demystify CRA rules, claim what you deserve, and keep more of your hard-earned income—without guesswork. Stay to the end for practical steps, relatable stories, and simple ways to subscribe for ongoing tips.
Are You Eligible to Deduct Your Home Office?
If your home is where you mainly do business—planning, delivering services, editing, coding, invoicing—you likely pass the main-place-of-business test. A wedding photographer may travel on weekends, yet still qualify because core admin and editing happen at home.
Are You Eligible to Deduct Your Home Office?
CRA expects regular, ongoing use of the workspace for income-earning activities. If you also meet clients there, document it—calendar screenshots help. An illustrator named Mina logged weekly client Zooms from her studio, easily proving consistent, business-centred use.
Calculate Your Deductible Percentage with Confidence
Measure your workspace and divide by your home’s total finished area. A 120 sq. ft. studio in a 1,200 sq. ft. condo equals 10%. If rooms are similar, the rooms method can work—just keep notes supporting comparability.
Calculate Your Deductible Percentage with Confidence
If your workspace doubles as a dining area, weight by time. Use hours used for business divided by total available hours. For example, 10 business hours daily in a shared room might turn a 12% space share into an 8% deduction.
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Recordkeeping That Survives an Audit
CRA expects you to retain records for at least six years. Save digital copies as PDFs with clear names. Back up to two locations. Include utility bills, rent statements, property tax notices, and every invoice connected to your workspace.
Life Happens: Adjusting Your Percentage Through the Year
If you move mid-year or convert the guest room into a studio, split calculations by period. Document dates, areas, and photos. A short note explaining the change helps future filings stay consistent and easy to follow.
Life Happens: Adjusting Your Percentage Through the Year
Freelance schedules swing—editors crunch in winter, photographers in summer. When using time-based allocations, track representative weeks each season. Note holidays and travel so your weighted average reflects reality rather than optimistic guesses.