Calculating business-use-of-home expenses

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Calculating business-use-of-home expenses


Example


The following is an example of how to calculate the business-use-of-home expenses:

Calculation of business-use-of-home expenses

Heat

$1,200.00

7A

Electricity

$1,000.00

7B

Insurance

$650.00

7C

Maintenance

$350.00

7D

Mortgage interest

$8,000.00

7E

Property taxes

$1,800.00

7F

Other expenses (specify): Water

$300.00

7G

Subtotal: Add amounts 7A to 7G

$13,300.00

7H

Personal use part (162 ÷ 180 × $13,300)

$11,970.00

7I

Subtotal: Amount 7H minus amount 7I

$1,330.00

7J

Capital cost allowance (business part only)

$0.00

7K

Amount carried forward from previous year

$150.00

7L

Subtotal: Add amounts 7J to 7L

$1,480.00

Line 7M

Net income (loss) after adjustments

$7,100.00

Line 7N

Business-use-of-home expenses available to carry forward: Amount 7M minus amount 7N (if negative, enter "0")

$0.00

7O

Allowable claim (the lesser of amount 7M or 7N above)

$1,480.00

Line 7P


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Date modified:
2023-06-21