Business Use of Home Expenses

Forum|Forum|5 years ago
November 19, 2020
1 reply
3 views

In Profile, what is the best way to enter a Business Use of Home expense that can be claimed 100%?

ProFile (Canada)

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Pro4

Level 8

Hi, thank you for using Intuit ProFile Community

Part 7 of the T2125, or similar section of other CRA business forms, is used to report business use of home expenses in all cases. The calculation of expenses in part 7 may be limited by the business net income since, these expenses cannot create or increase a business loss

Hope this helps

D

degier-taxAuthor

Level 2

Thank you for your response. However, it doesn't solve the problem. I am well aware of how Part 7 of the T2125 form works with the proration of the full expense based on area of the office vs the area of the home. In this case, this specific home office expense is 100% attributable to the office space and can be claimed as such. I can't put the expense in Part 4 where the business is a partnership and this expense was incurred by only one of the partners. For now I have placed the expense in Part 6 so 100% of it is claimed by the partner who incurred the expense. I was hoping there was a way to put it in Part 7 and not have it prorated.

I'm looking for what is the best practice in Profile for this situation.

D

DCA2

Level 3

I don't understand this part: "In this case, this specific home office expense is 100% attributable to the office space and can be claimed as such. I can't put the expense in Part 4 where the business is a partnership and this expense was incurred by only one of the partners." Am I correct in assuming you mean the business belongs to one spouse only? In that case, enter 100% in "percentage of the partnership" in Part 1 and use Part 7. Interesting fact, which I discovered quite by accident last year - if both spouses are partners in the T2125 business, you can assign different use-of-home expenses to each spouse by assigning different square footages to each in Part 7 (A).

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