[Verse 1] Sarah works from home, her spare room's now her space Computer, desk, and files in their designated place But can she claim this cost when filing her return? Section eighteen twelve has rules that she must learn [Chorus] Exclusively or almost exclusively used Ninety percent business, that's the threshold to be approved Principal place of business, or meeting clients face to face These are the only ways to claim your home office space No square footage ratios written in the Act CRA guidance helps but statutory law's the fact [Verse 2] Mike's a consultant who meets clients in his den Tuesday through Saturday, from nine to five and then His home becomes his office, exclusively it seems But mixed-use spaces don't fulfill these legal schemes [Chorus] Exclusively or almost exclusively used Ninety percent business, that's the threshold to be approved Principal place of business, or meeting clients face to face These are the only ways to claim your home office space No square footage ratios written in the Act CRA guidance helps but statutory law's the fact [Bridge] Administrative guidance gives us proportional rules One-third formulas and percentage tools But read the statute closely, there's no mention of square feet The test is use-based only, making compliance complete [Verse 3] Lisa runs her practice from her basement every day No other office space, she works from home this way Principal place qualifies under subsection twelve Her home office costs are deductible wealth [Chorus] Exclusively or almost exclusively used Ninety percent business, that's the threshold to be approved Principal place of business, or meeting clients face to face These are the only ways to claim your home office space No square footage ratios written in the Act CRA guidance helps but statutory law's the fact [Outro] Section eighteen twelve defines the only test Use-based requirements, forget about the rest Business use exclusively, that's the key to know For home office claims and making sure they flow
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