4 ms·

There are trade offs with that too. If you use a home office for a write off, you have to pay tax when you sell the home

• pixl97 6y ago
  How does that work for a rental?
• dubcanada 6y ago
  I assume that's in the US? You don't have to do that in Canada.
  • leetcrew 6y ago
    I don't think you get to write off work expenses as a W2 (ie, hourly or salaried) employee in the US. pretty sure only independent contractors get to do this. otherwise, everyone would be doing this for commuting expenses.
    • xav0989 6y ago
      (At least in Canada) commute to your "usual place of business" is explicitely excluded from write-off. Also, if your employer reimburses you for travel (mileage) you can't write it off at tax time.
  • refurb 6y ago
    It applies to Canada as well. Claim 25% of your home as a business expense means 25% of any capital gains are taxed, unlike your primary residence which isn’t taxed. “You may have to report a capital gain if you change your principal residence to a rental or business property, or vice versa.” https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-127-capital-gains/principal-residence-other-real-estate/changes-use/changing-part-your-principal-residence-a-rental-business-property.html https://www.canada.ca/en/revenue-agency/services/tax/individ... However, it looks like there were some changes that may allow you to avoid it (business use was a small fraction and you didn’t take advantage of tax benefits from business use).