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Legal Ease
Legal Ease, Lawyer
Category: Canada Tax
Satisfied Customers: 101357
Experience:  Lawyer
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If I rent a house and I am self-employed I understand I can

Customer Question

Hi - if I rent a house and I am self-employed I understand I can write off a portion of the home if I use it for office space. Just as an example, let's say I gross 50K per year and my rent is $2500 per month, and I use half the house for office space. Can you approximately say how much of that rent I will get back or save?
Submitted: 1 year ago.
Category: Canada Tax
Expert:  Legal Ease replied 1 year ago.

Thanks for your question.

Are you saying you use half of the entire house solely for a home office?

Customer: replied 1 year ago.
that is correct, the whole lower level of a raised bungalow. Yes it would serve as office for 2 businesses.
Expert:  Legal Ease replied 1 year ago.

Then you would take half the rent and it would be a legitimate business expense that would be subtracted from your business income.

It would be treated the same as any other business expense.

Do you see what I mean?

Please feel free to post back with any follow-up questions you may have. If you don't have any then I hope I have earned a 5 star rating but if you don't feel that I have please don't hesitate to reply back and let me know what more I can do to assist you. Finally, please know that even after you rate me I will be here for you and you can ask follow-up questions if you think of them later on at no further charge of course.

Customer: replied 1 year ago.
1250 x 12 = 15000. But I wouldn't get 15000 dollars back in my return. Could you approximate though how much of that I would get back?
Expert:  Legal Ease replied 1 year ago.

It is not about getting something back.

That amount of money will reduce what the total is that you earn from your business income and you will pay less tax.

I cannot know how much less tax because I am not your accountant and don't now your financial situation.

Expert:  Legal Ease replied 1 year ago.

Is there anything I can help you with at this point in time?