6 Home Based Business Tax Deductions You Don’t Want to Miss

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6 Home Based Business Tax Deductions You Dont
Want to Miss
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1. Automobile Expenses
In addition to the normal deductions such as gas
and oil, licensing, insurance, maintenance, and
repairs, you can also deduct interest on any
amounts borrowed to buy an automobile, or
passenger vehicle to be used to earn income.
Keep in mind, these deductions will be based on
the amount traveled to earn business income. 
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2. Insurance
Home based insurance qualifies as a tax
deduction, just like any other commercial
insurance premiums.
A portion of the cost of home insurance may also
be written off if your home based business meets
the conditions for claiming business-use-of-home.
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3. Office Expenses
Make sure to distinguish between office expenses
and depreciable assets. Things like office
supplies which include, pens, stamps, paper
clips, etc would be considered an office expense.
Things like filing cabinets, printers, furniture,
etc, would be considered as depreciable assets
and fall under the rules of Capital Cost
Allowance.
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4. Mortgage Interest and Property Taxes
If you have a mortgage on your home, and have a
home office, you can claim the mortgage interest
under the Business-use-of-home expenses rules.
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5 . Use of Home Expenses
These include heat, electricity, water,
maintenance, telephone and internet connection.
 A portion of these costs can be allocated to
your business and claimed as a business expense,
provided your home office meets the criteria for
business-use-of-home deductions.
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6. Carry Forward of Unused Work Space in Home
Expenses
If you have more expenses than income for your
home based business, you will have what CRA calls
unused Work Space in Home Expenses. These amounts
can be carried forward into next year, to be used
against business income.
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