The CCA would be deductible on any remaining balance on a declining-balance basis at a rate of 30%.įor province and territory-specific tax changes, click here.

The enhanced first-year capital cost allowance (CCA) now includes vehicles and equipments that fall under new Class 56 - new and used fully electric or hydrogen powered automotive equipment and vehicles that currently do not benefit from the accelerated rate provided by Classes 54 and 55. The enhanced rate would apply only for the tax year in which the equipment or vehicle first

To simplify the process for using the detailed method, the CRA has introduced simplified Form T2200S and Form T777S, and an online calculator to help calculate your eligible home office expenses.

You cannot claim any expenses that were or will be reimbursed by your employer and you must keep supporting documentation.

You have a completed and signed Form T2200S or Form T2200 from your employer.

Your expenses are used directly in your work.

You were required to pay for expenses related to the work space in your home.

You are eligible to use this method if:.

Days off (e.g., weekends and statutory holidays that you did not work)Įmployees can also use the detailed method to claim the home office expenses.

Days you worked part-time hours from home.Days you worked full-time hours from home.You can count the following as 'work days' for the temporary flat rate method:.Your employer does not have to complete or sign Form T2200S or Form T2200.You do not have to calculate the size of your work space or keep supporting documents.If you use this method, you can claim $2 for each day worked from home in 2020 due to the COVID-19 pandemic, up to $400.

Your employer did not reimburse you for all of your home office expenses.

You are only claiming home office expenses and are not claiming other employment expenses.

You worked more than 50% of the time from home for a period of at least four (4) consecutive weeks in 2020 due to the COVID-19 pandemic.

You are eligible to use the new temporary flat rate method:.

This method can only be used for the 2020 tax year. Canadian small businesses and sole proprietors:Įligible employees who worked at home during 2020 due to the pandemic can use the new temporary flat rate method to simplify claiming the deduction for home office expenses for the 2020 tax year. Under the CARES Act, the allowable business interest expense deduction increased for some business entities from 30% to 50% of adjusted taxable income. Updated Spring 2021 American small businesses and sole proprietors:

Small business tax write off list