Claim business-use-of-home expenses
Can I deduct my home office when self-employed?
A self-employed home workspace must meet CRA’s business-use conditions. Eligible costs are allocated to business use, and the deduction cannot create or increase a business loss.
Where to begin
- Confirm the workspace is your principal business location, or is used only to earn business income and regularly to meet clients, customers or patients.
- Use a reasonable area allocation and account for time when a room also serves personal purposes.
- Identify eligible costs and complete the business-use-of-home calculation in Part 7 of T2125.
- Apply the income limit and track any eligible unused amount for a later year; avoid claiming an expense twice.
Before you open the official service
- Workspace measurements, use schedule and household expense records.
- Business income before the home-office deduction and prior carryforward records.
Keep your actual documents and account details off this website. Use the official service’s current checklist before applying.
What to check for your situation
Employee home-office rules differ. Claiming capital cost allowance on the home can affect capital gains and recapture when it is sold.
Fees, processing times and document rules can change. This page helps you navigate; it does not confirm eligibility or replace the government’s instructions.
Official sources
Prepared by Active K Digital from the linked public guidance. Read our source approach.