CRA confirms that employee home office expenses generally cannot include property taxes or insurance

At the October 2018 APFF Roundtable (2018-0768871C6 F), CRA indicated that the home office expenses of an employee (other than a commission employee governed by s. 8(1)(f) rather than s. 8(1)(i)) may include “property taxes, and home insurance costs associated with maintaining the office.” CRA has now issued a correction, stating:

Where a taxpayer claims a deduction under paragraph 8(1)(i), property taxes and home insurance premiums are not deductible. Those are not included in home office expenses for office rent for purposes of subparagraph 8(1)(i)(ii) of the Act. Similarly, they are not included in the cost of supplies that were consumed directly in performance of the duties of the office or employment for the purposes of subparagraph 8(1)(i)(iii).

Neal Armstrong. Summary of 28 March 2019 External T.I. 2019-0799241E5 F under s. 8(13).