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Level 2
March 25, 2023
Question

T776 - Home Office Expenses

  • March 25, 2023
  • 1 reply
  • 9 views

How do I input home office expenses on the T776? I do not see a sheet to input the expense and SQ footage breakdown. 

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1 reply

Level 7
March 25, 2023

That is because Home Office Expenses are not deductible against rental income, only business income.  The cost of some office supplies (pens, paper etc) can be deducted against rental income, but not use of a home office.

Level 4
March 25, 2023

Janis - generally you are correct.  However, if a client has a sufficient number of rental properties, I have seen CRA acknowledge that said client is in the business of renting out properties and allow same.  This is, however, very rare.

As a general remembrance, rental income is considered PASSIVE income, similar to investment income, and so minimum deductions are allowed against same.  However, should a client be providing more services than just a rental property (cleaning of property, etc.,) the nature of the income can change.

Hope this helps.

Jo