Re:The Income Rich Take One For The Team. Thanks!
by ralph on Wednesday January 02, 2013 @06:38PM
(#5000080)
AIUI in some areas if the business claims for part of the main residence as a home office over a prolonged period then Capital Gains Tax can be due on that same fraction if there's a profit when the house is sold. IOW, it's not a free lunch.
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Re:The Income Rich Take One For The Team. Thanks!
by cperciva on Thursday January 03, 2013 @12:52PM
(#5003522)
I'm not very familiar with these rules, but you're definitely right that there are some complications. I have a friend who works for CRA and commented that he would never claim costs of a home office in a residence he owned, simply because the tax savings wouldn't be enough to make up for the headaches and tax audits which would result. (Claiming a home office in an apartment you're renting is much easier, since there's no capital gains to worry about and there's an easy paper trail for how much the space costs.)