CANADA: Can I deduct condo fees in business use-of-home deductions?
Info:
the condo is a townhouse - not in a building.
the condo fees are >0/month (00/year)
there are not many common areas
the condo fees cover items such as ALL exterior maintenance (roof, windows, doors, garage doors, exterior brick/foundation, eaves cleaning, window cleaning, lawn care, snow removal, garbage collection, etc) as well as insurance for everything from outwards from the studs.
I'm thinking that basically all of those items would fall under either "cleaning materials", "insurance", and "routine maintenance and incidental repairs" stated here: turbotax.intuit.ca/tips/run-a-business-out-of-your-home-what-can-you-claim-2-5713
These are mandatory fees that I have to pay in order to have my house/home office and if I didn't pay them in fees, I'd still have to pay for all of those things separately and include them. So can I deduct the business use portion of them?
EDIT: to be clear, none of the major replacements (roof, windows, doors) covered by this, imo, would be consider capital as they are never to improve, always just to get back to original, ie: worn/broken/leaky shingle roof replaced with shingle roof, dirty leaky windows replaced with new base model windows, doors replaced with similar model newer doors, etc. If we want improvements (ie: I am adding an egress basement window) we have to do them ourselves and then forever assume the cost of repair/replacement/insurance for that window.
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Generally, probably yes, to the extent of the proportion of the residence which is used for business purposes on a time basis as the dividend of the total amount of the expense.
There's a whole bunch of rules, which are only briefly touched on in the intuit article, which govern what you can do and which govern the consequences of them.
The biggies are:
Using it on a regular and ongoing basis to meet your clients, customers, or patients
The capital gain and recapture rules will apply if you deduct capital cost allowance on the business use part of your home and you later sell your home.
These are not terribly difficult to for the layman to understand articles which you might want to read. They seem to be aimed at sole proprietorships and having a corporation as a business vehicle might affect things.
www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-4-businesses/series-4-businesses-folio-2-deducting-business-expenses/income-tax-folio-s4-f2-c2-business-use-home-expenses.html www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/completing-form-t2125/business-use-home-expenses.html
This might also apply to you.
www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-229-other-employment-expenses/commission-employees/work-space-home-expenses.html
This answer has a link to an interpretation bulletin (514 I think) but the link is no longer valid and I could not find a new one, unfortunately.
In Canada, can I deduct my mortgage if running a business from my home?
Here's some more stuff. Entering relevant search terms in your favourite search engine will produce lots more.
realestatetaxtips.ca/can-deducting-home-office-expense-affect-principal-residence-exemption/ business.financialpost.com/personal-finance/taxes/what-you-need-to-know-about-claiming-the-principal-residence-exemption-on-the-sale-of-property business.financialpost.com/personal-finance/taxes/your-personal-business-better-be-real-if-you-are-using-it-to-claim-expenses-for-tax-purposes
Another thing you might need to consider is whether your condominium's rules allow for running businesses, which would put paid to the scheme.
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