Tax Breaks for the Self-Employed; Working From Home

Being self-employed has so many advantages one being getting up whenever you want—sleep is very important—among other things. And the now, the federal government has created benefits for the self-employed individual.

By the rules of the Canada Revenue Agency, there are 2 typical home-office kinds; self-employment; or having an office in your home by way of your employer as your main office where you hold meetings.

To make it easy make your workspace 1/5 of your home. This is an advice from some tax experts.

This will permit you to remove 1/5 of utilities, insurance and repairs from your overall bills. If you are self-employed, mortgage interests and property taxes will also be reduced by a fifth!

If your employer requires you to make use of your own personal vehicle, you can have deduct some money from the overall money you spent on your car such as repairs, gas, license, maintenance, etc.

Your employer will also have to sign the Form T2200 stating that the use of your vehicle was necessary for the job.

If you work for thyself, then you won’t need the Form T2200.

I think you can do the math on that one.

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