Program · Federal
Home Office and Vehicle Deductions
Business-use portion of home expenses and vehicle expenses deductible against self-employment income. Requires documentation and reasonable calculations of business-use percentage.
Eligibility
- Work from home on a regular and continuous basis
- Vehicle used for business (client meetings, deliveries, business travel. NOT regular commute to one location)
Limits and rules
- Home office: workspace square footage / total home square footage, or simplified $2/day up to $500
- Deductible home expenses: utilities, rent, property tax, maintenance, insurance, mortgage interest (NOT principal)
- Vehicle: business km / total km of actual expenses (fuel, insurance, maintenance, depreciation). Logbook required.
- Meals with clients: 50% deductible
- Cannot create a business loss using home office deduction (carry forward to future years)