31 March 1999 External T.I. 9907495 - IT-352R2 EMPLOYEE'S EXPENSES

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues: Amendment to IT-352 (Employee's Expenses)

Position: No amendment required but will consider in future

Reasons: Information available in Guide T4044 and Information Bulletin IT-522R

XXXXXXXXXX 990749
E. Erskine
March 31, 1999

Dear XXXXXXXXXX:

Re: Comments on Interpretation Bulletin IT-352R2

This is in reply to your letter of March 6, 1999, commenting on Interpretation Bulletin IT-352R2, Employee’s Expenses, Including Work Space in Home Expenses. We agree that information regarding the deductibility of interest on car loans and payments on account of leases of cars, computers and other equipment commonly used by home office workers should be readily accessible to interested taxpayers. This information is currently available in Supplementary Guide T4044, Employment Expenses. We will, however, take your comments into consideration when Interpretation Bulletin IT-352R2 is revised in the future.

We enclose a copy of Supplementary Guide T4044 and direct your attention to the discussions on pages 7 and 10-13, concerning the items mentioned in your letter. As well, we enclose a copy of Interpretation Bulletin IT-522R, Vehicle, Travel and Sales Expenses of Employees, which describes in detail the rules concerning the deduction of expenses relating to both leased and owned vehicles.

We note from your letter that you are interested in information relating to the “home office entrepreneur”. Interpretation Bulletin IT-352R2, Supplementary Guide T4044, and Interpretation Bulletin IT-522R relate specifically to expenses that may be deducted by an employee. If you are in business for yourself, then you may be an independent contractor rather than an employee. If you would like information relating to expenses that may be deducted by an independent contractor, or information to help you decide whether you are an employee or an independent contractor, please do not hesitate to contact your local Taxation Services Office.

Thank you for taking the time to write to us with your comments. We trust that the enclosed Guide and Interpretation Bulletin will be of assistance to you.

Yours truly,

Patricia Spice
Manager, Technical Publications Section
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate

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