Question by Michelle P: Canadian Income Tax – Eligbile “Work @ Home Expenses)?
I am a salaried employee who works from home. Fortunately my company pays for many expenses (company car/gas/insurance, cell phone, home phone, internet). However, we are given T2200 forms each year to deduct a portion of our Electricity/Heat/Water etc. I use the home space inexcess of 50% of the time for my work (so I am eligible for deductions)….it is roughly 3.5% of my total square footage of my house. However, I understand that unless you are a commissioned employee you cannot deduct property taxes etc. I also understand you cannot deduct mortgage “interest”, BUT can I deduct a portion of my mortgage “principle” as it pertains to the ratio of space I occupy for my work? Look forward to your advice, and thank you in advance.
Best answer:
Answer by quizzard123
I don’t have any experience with the whole ‘work at home’ issue, but one thing I can tell you is that you’ve got the mortgage issue backwards.
If anything is deductible, it is the interest on the mortgage, not the principal. Principal is never deductible
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