Business use of home - employees (interview)

  1. Enter the total area or the total number of rooms in your home and work space. TurboTax uses this to calculate the allowable portion of your expenses.
    Note: If the rooms you use for work are not average in size compared to the rest of the rooms in the house, it could cause an inappropriately small or large work-space allocation. While both methods are acceptable, the area method is more accurate.
  2. Enter the total area or the total number of rooms in your home and work space. TurboTax uses this to calculate the allowable portion of your expenses.
    Note: If the rooms you use for work are not average in size compared to the rest of the rooms in the house, it could cause an inappropriately small or large work-space allocation. While both methods are acceptable, the area method is more accurate.
  3. Under Income, select Self-Employment. Enter any pertinent information as you complete the screens.
  4. On the first T2125 Business-Use-of-Home screen, click Yes.
  5. On the first T2125 Home Expenses screen, enter the total amount for expenses such as heat, insurance, and property taxes and click Continue.
  6. On the second T2125 Home Expenses screen, go to the Amount carried forward from previous year field, and enter any unused amount to carry forward from last year.
Summary of deductible home expenses by income type
Expense Self-employment income Commission income Employment income
Proportionate share of rent applicable to the office portion Yes Yes Yes
Maintenance costs such as heating, electricity, and cleaning materials Yes Yes Yes
If you own your home and maintain an office:      
Property taxes Yes Yes No
Home insurance Yes Yes No
Mortgage interest Yes No No
Capital cost allowance * Yes No No
* The capital gain and recapture rules will apply if you deduct capital cost allowance on the business-use part of your home and you later sell your home.