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Discussion Starter #1
I've sent this question to my tax planner/accountant, but I'm curious if I can get a faster answer from this forum.

I work full-time and am also self-employed.

My employer is suggesting they they provide me with a T2200. I work from home 3 days of the week and 2 days in the office. I put 15,000km on my vehicle yearly travelling between my home office and my work office, once per week overnight. My hotel accommodations are reimbursed by my company weekly.

So my question is this. I claim home office expenses for my self employment. I have an office set up specifically for self employment/evening/weekend work. During the day, I work in a different spot in the house (kids at school, wife at work - peace and quiet). The two are very much separated.

So can I use the employer suggested T2200 to claim vehicle expenses and keep my home office expenses as my self employment deductions?
 

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Travel between home and the office is not deductible, whether you are an employee or self-employed. Only travel from your place of business to meeting a client, picking up/dropping off supplies, work-related travel is deductible, and then at a percentage of personal/business, and in your case, self-employment.

As you do not have a specific office set up at home for your employment, you cannot claim home office expenses even with a T2200. If you use the one office, you would have to prorate the expenses between your employment and self-employment; if you do, keep very detailed records and logs of hours as CRA will question the dual use.
 

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Discussion Starter #3
Travel between home and the office is not deductible, whether you are an employee or self-employed. Only travel from your place of business to meeting a client, picking up/dropping off supplies, work-related travel is deductible, and then at a percentage of personal/business, and in your case, self-employment.

As you do not have a specific office set up at home for your employment, you cannot claim home office expenses even with a T2200. If you use the one office, you would have to prorate the expenses between your employment and self-employment; if you do, keep very detailed records and logs of hours as CRA will question the dual use.
My accountant has indicated that I can claim JUST the mileage if I choose to do so. But I'm a skeptical.

On T2200 is reads:

"Did you normally require this employee to travel to locations that were not your place of business or between different locations of your places of business, during the course of performing his or her employment duties? ............... Yes No

If yes, what was the employee's area of travel (be specific)?"


So I'm technically travelling between different locations of my places of business. My home office (which is basically my recliner) which I'm not considering any kind of an employment expense. and my office in another city.

and

"Did you require this employee to be away for at least 12 consecutive hours from the municipality and metropolitan area (if there is one) of your business where the employee normally reported for work?"

I normally reported from my home office, and spend approximately 32 hours away from my home office per week to be on location at my other office.

This is very confusing. I have my accountant saying I can, but I see it as a grey area because ultimately, I'm travelling to and from work...
 

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Is the "my office in another city" the employer who is paying you?
Or is that your "self-employed" work site?

When I worked for a consulting company, mileage to the consulting company's office was identified by their internal tax department as being not allowed. Mileage to the client site that hired the consulting firm, where the client was providing office space, did count.

Going into your employer's provided office is considered to be the employee's cost.


I haven't been in a situation for years where I was not heading into my employer's building.


Cheers


PS

Maybe the accountant is figuring that the three days at home establishes that as the usual place of place of business, which might make it okay. The discussions when I was getting a T2200 were that it was the employer's place of business and where one was assigned that mattered.

For example, the client site, like the office I was officially based out of was in a different city than I lived. Going into the office meant no mileage while going to the client site did.
 

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Discussion Starter #5
Is the "my office in another city" the employer who is paying you?
Or is that your "self-employed" work site.
Yes, the employer in another city is paying me. I was not self employed. This is a full-time job and has been for 11 years. I've been working from home 3 days a week for the past 5 years. We have a new person in accounting who has suggested the T2200 for me.

Is the "my office in another city" the employer who is paying you?
Or is that your "self-employed" work site.
Maybe the accountant is figuring that the three days at home establishes that as the usual place of place of business, which might make it okay. The discussions when I was getting a T2200 were that it was the employer's place of business and where one was assigned that mattered.

For example, the client site, like the office I was officially based out of was in a different city than I lived. Going into the office meant no mileage while going to the client site did.
That's the thing, I'm at my home office 3 days a week so that is my usual place of business... But it's my house. The other two, I go to the office, spend the night in a hotel and same the next day and then back home I go. It's for client meetings, team meetings, etc but 90% of the time, it's done at that office.
 

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If your home office is where you are primarily required to work, would the "between different locations of your places of business, during the course of performing his or her employment duties" part mean the mileage is okay?

Unfortunately, for my case I was always either sent to my home office or a client site so it was clearly either not allowed (i.e. home office) or allowed (client site, which had no connection to the employer).


Maybe someone with more experience for being on the move for one company can comment?


Cheers
 

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My accountant has indicated that I can claim JUST the mileage if I choose to do so. But I'm a skeptical.

On T2200 is reads:

"Did you normally require this employee to travel to locations that were not your place of business or between different locations of your places of business, during the course of performing his or her employment duties? ............... Yes No

If yes, what was the employee's area of travel (be specific)?"


So I'm technically travelling between different locations of my places of business. My home office (which is basically my recliner) which I'm not considering any kind of an employment expense. and my office in another city.

and

"Did you require this employee to be away for at least 12 consecutive hours from the municipality and metropolitan area (if there is one) of your business where the employee normally reported for work?"

I normally reported from my home office, and spend approximately 32 hours away from my home office per week to be on location at my other office.

This is very confusing. I have my accountant saying I can, but I see it as a grey area because ultimately, I'm travelling to and from work...
you need a new accountant, as indicated above you cannot claim anything to do with traveling when your going from home office to a head office, even if you travel from your home office to a client site, then it should be reported as the distance from your head office to the client site, because ultimately the taxpayers of Canada are not paying you to travel from your home to your place of work.

You would have to start out by figuring out which site is your "primary place of business" your home office or the head office, because thats what a auditor will ask you before they start the determination of expenses.
 

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Discussion Starter #8
You would have to start out by figuring out which site is your "primary place of business" your home office or the head office, because thats what a auditor will ask you before they start the determination of expenses.
"My" primary place of business is my home office. I spend 3 days a week here and 2 days in my remote office. That almost never waivers. 60%+ of my time is in front of my computer, working from home.

I'm required to go to the office for meetings with both staff as well as client meetings and in between-I do some of my regular work.

The second question I have is that "if my employer provides me with a t2200, would it be my responsibility if the CRA ultimately determines it's not valid or is it my employer? I'm not making up the form for myself. I know employers don't hand out t2200's easily so does this fall under the category of "Your employer deemed that a t2200 was acceptable and you were provided it."

Am I worrying about something that I shouldn't be? Is it my employer that takes the heat?

I have two accountants telling me this is okay. My spidey senses are telling me it's not.
 

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I expect CRA would go after the tax payer for the $$$ owed and possibly the employer for incorrectly providing the T2200 in appropriately.

Certainly where a tax preparer or accountant has made the mistake, it has worked that way.


For me, I'd figure out how much $$$ were involved. If I couldn't easily repay it, then I'd skip it and when CRA is less busy - hash it out directly with them. If it is allowed, it should be a simple matter to wait after the NOA is received to file a change to the return.

Two accountants think it is okay and the wording "between different locations" are what makes me think it might be okay. After all, if you are 3 days in your home office then going to another location, this does not sound different to me than usually being in head office then having to travel to the office in another city.


Just my two cents ...


http://www.cbc.ca/news/business/taxes/home-office-expense-claims-coming-under-closer-scrutiny-1.1413324


Cheers
 

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Discussion Starter #10
Thanks for the link Eclectic12.

The part that stands out is the first of the two strict conditions.

"It must be where you "principally" — meaning more than 50 per cent of the time — "perform the duties of employment.""

For me it's pretty easy. 60% at my home office, 40% at the actual workplace.

Funny thing is, I'm not trying to do anything shady, I actually wish it was pretty black and white!

1. Kork works from home 60% of the time and has for years.
2. Kork's Employer provides T2200 based on strict guideline above. Signature and all is good.
3. Kork can claim some of the mileage.
4. Done.

Is there anyone that I can call or a way to find out a definitive answer?
 

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The first question you have to ask is does your employer. 'require' you to maintain a home office or do they just allow you to,maintain a home office. If you lived 20 minutes from the office would you be required to have a home office or would you just work out of the main office.
 

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Discussion Starter #12
The first question you have to ask is does your employer. 'require' you to maintain a home office or do they just allow you to,maintain a home office. If you lived 20 minutes from the office would you be required to have a home office or would you just work out of the main office.
My employer would not require me to have a home office in the situation above (if I lived close by), but in the current situation, I am required to work from home.
 

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My employer would not require me to have a home office in the situation above (if I lived close by), but in the current situation, I am required to work from home.
I gather it is your choice to live where you do and that you do not do business for your employer from your home location. I mean like see clients at your home or manage a sales territory around your home etc. In other words your company did not ask you to live in that location or hire you to do work for them in that location. They merely gave you the option to telecommute because of where you live.
Did your company provide you with the T 2200 and if so what does it say?
 

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Discussion Starter #14
I gather it is your choice to live where you do and that you do not do business for your employer from your home location. I mean like see clients at your home or manage a sales territory around your home etc. In other words your company did not ask you to live in that location or hire you to do work for them in that location. They merely gave you the option to telecommute because of where you live.
Did your company provide you with the T 2200 and if so what does it say?
Correct, I used to live 5 minutes away but after 5 years moved to a more family friendly community which happens to be a 2 hours drive. So yes, I was provided the option to continue employment while telecommuting most of the time.

I don't have the T2200 yet.
 

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Based on this, I would say you would not be able to use the home office deduction. While the attached link is a couple of years old it is still valid and may give you some insight.
You can always get the t2200. How it is worded may provide further insight into your employers take on things. However I would hope your employer gets some proper sdvice before issuing it and it is not just some HR person filling it out. Just because they issue a t2200 doesn't mean you can use the deductions.
https://www.google.ca/url?sa=t&source=web&rct=j&url=http://business.financialpost.com/entrepreneur/does-your-home-office-qualify-for-deductions-against-household-bills&ved=0ahUKEwj5-tHw6IbMAhVBkYMKHVTkBiwQFggtMAc&usg=AFQjCNEecFCqdCtDHX3Eh7Ig45de13LhhQ
 
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