Working From Home in 2020

We have been approached by some clients who ask if it is better for them to take advantage of the new 2020 working from home deduction or claim the deduction through the detailed method. This new deduction is calculated as a flat rate of $2 per day (at a maximum of $400). You cannot count days off, vacation days, sick leave days or any other day that you were absent from work. Also, if you use this flat rate, you cannot deduct any other employment expenses.

As the name suggests, the detailed method involves more details such as receipts for all expenses claimed. However, this method may be more beneficial to you if you incurred a higher amount of costs than $400 or had more than just working from home expenses (i.e. if you were required to purchase tools as a trades person).

List of Examples of Deductible Work-From-Home Expenses
 
Disclaimer: each situation is unique. Please speak with your accountant to verify if these examples of expenses are deductible for you. Any expense that your employer has already reimbursed cannot be used.
 
Use of home expenses: If you use your home office more than 50% of your work week, you may be able to deduct eligible expenses paid for the maintenance of your home office. Please measure the dimensions of your home office and have the total square footage of your home on hand. Example of such expenses are:

-Electricity, heating and water costs
-Maintenance done to the home office (minor repairs)
-Internet
-Telephone
-Portion of your rent

Other Deductible Expenses: Please retain all receipts for 7 years. All expenses must be paid out of pocket and not be reimbursed by the employer in order to be deductible.

-Supplies such as paper, ink, pens, etc. used to perform work duties
-Small tools to perform work duties such as a calculator (please keep all receipts speak with your accountant about including your various purchases)
-Software such as Zoom or other necessary to carry work responsibilities
-Cell phone charges (if not reimbursed or paid by employer)
-Accounting fees  

If you are a commission employee, you can also claim: a portion of your home insurance, property taxes and lease of a cell phone, computer, laptop, tablet, etc.