The CRA has decided that home office expenses can only be claimed if the employer requires the employee to work from home more than 50% of his/her work days.
The flat rate of $2/day has been discontinued for 2023.
For an employee to claim employment expenses the employer must confirm the need to incur various expenditures on a signed T2200 Conditions of Employment Form and that no reimbursement was paid for them. The following types of expenses qualify:
- Accounting and legal fees (commission paid only)
- Advertising and promotion (commission paid only)
- Motor vehicle expenses, including operating expenses (fuel, repairs and ICBC insurance), interest on vehicle loans and capital cost allowance
- Entertainment expenses (commission paid only)
- Travelling expenses, including food & beverages, lodging and transportation (airline, bus, train)
- Parking
- Office supplies
- Long distance phone charges and mobile phone airtime
- Salaries of a substitute of an assistant
- Office rent
- Licenses (commission paid only)
- Bonding premiums (commission paid only)
- Equipment leasing (commission paid only)
- Training Costs (commission paid only)
If the employee is given a car allowance in a flat amount or a rate per km allowance, then that amount must be deducted from the amount claimed under vehicle expenses.
Please contact us at 604 558 2234 if you want to learn more.
