Given the large numbers of people, both employed and
self-employed, who are currently working from home in order to
comply with physical distancing guidelines, it is useful to review
the rules surrounding the deduction of home office expenses, for
purposes of the Income Tax Act (Canada) (herein the
"Act"). While there are many
similarities, there are some subtle differences in the restrictions
that apply to employees earning employment income versus
self-employed individuals earning income from carrying on a
business at home.
Employees
Subsection 8(13) of the Act contains the principal restrictions
which limit the deduction of home office expenses in computing
income from employment. The "work space" in the
individual's home must either: (i) be the place where the
individual principally (meaning more than 50%) performs the duties
of such employment, or (ii) be used exclusively during the period
in question for the purposes of such employment and,
