how to claim rent expense for self employment?

Question

I work at home, and I'm claiming rent as an expense.
on form t2125


Income: $8449.35
I work 10/24 hours 7 days a week
House is 84 square meters
Work 39 square meters
Personal 45 square meters
Annual Rent is $2024

under Business use of Home expenses section
do I just write down $2024 under other expenses then subtract personal use?

45/84 x $2024= $1084.29 for personal use 
2024- 1084.29= $939.71 

Is $939.71 the amount that I can claim?


I ask an similar question earlier, but the answers given were confusing. All I want to know is do I write down  $2024 for rent or do I subtract the business part use first which is 391.55. Then write down $2024-391.55=1632.45 as the total for rent on the business use of home expenses section?

.

neoplop · Accepted Answer

If the 39 sq m is EXCLUSIVE to the business use (as in it is not used for anything else like surfing the internet the other 14 hours of the day) then you don't calculate the timed use. Otherwise, yes you have to.

You write the full amount of rent, then you subtract the non-business use.

There are detailed examples in the Guide T4002, Business and Professional Income:
http://www.cra-arc.gc.ca/E/pub/tg/t4002/README.html

You should also read this:
http://www.cra-arc.gc.ca/E/pub/tp/it514/it514-e.html

how to claim rent expense for self employment?

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