Wife's boss wanted to know if she's claiming "detailed" WFH expenses, and if he needs to fill out some form.
What are you people doing with this?
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Wife's boss wanted to know if she's claiming "detailed" WFH expenses, and if he needs to fill out some form.
What are you people doing with this?
Did the math. The easy calculation method is the easiest and ends up being about the same. After you calculate your single office is only 3% of your home and only 3% of everything pro rated for the year its not worth all of backup/calculations ect. No need for a T2200/T2200S for the easy method.
https://www.canada.ca/en/revenue-age...rms/t777s.html
too lazy to do the detailed method
Our work also surprisingly gave us the option to submit details and have them issue a T2200, but I'm just doing the easy $2 per day thing.
Detailed is a lot of work because you have to go back and look at all your utility bills and then calculate how much % of your home office is compared to your whole home. I have a feeling it also increases risk of audit but probably low risk unless you're claiming exorbitant amounts.
If you rent it could be worth the effort because you can claim rental costs (as opposed to owning where you can't claim your mortgage payments).
I'd be curious to hear other people's experience if they go thru all the numbers and determine detailed is worth the effort.
Take the easy method and move on with my life.
Easy method. Home office is not nearly enough % of my square footage for detailed to make sense.
I think between utilities, telecom etc, I could claim on $700/mo of expenses, and office is 10% of house,
My utilities/telecom is only about $500/month or $4500 for 9 months of WFH in 2020. Simple method gives $400, so I'd need my office to be 9% of my house (including developed basement) in order for detailed to exceed simple.
Of course your #s will vary depending on your utility bills.
edit: this is also assuming your office is used exclusively for work. If you go in there to postwhore on Beyond in the evening, then you have to prorate usage.
I checked for 2019 - wife's office space is 9%, utilities, etc. at 9% was about $500 for the year. There were other house related deductions but I don't think you can claim most of them for WFH.
Assuming you were WFH for every day of the year with a standard 2,080 hour a year job (and could claim vacation days, etc.), it'd put you at $520 with the fast method.
Pretty rough calculations but basically it means you should knock down some walls to expand your office and profit.
open concept house - claim the whole main floor lol
This may be useful for some of you:
https://www.canada.ca/en/revenue-age...space-use.html
Simple method here, the detailed method makes alot more sense if you're renting I think.