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hello all

my mother owns a condo in toronto and i am thinking of renting it from her once i move back to toronto. i own a corporation and do my business from home. do you know if i legally rent the apartment from my mom using my company so that the company is the renter. that way, it seems like ALL of the rent the company pays my mom should be tax deductible. is this possible? will it raise any red flags at CRA?

I will be living in that apartment so that may make things complicated a bit. any comments of suggestions will be appreciated.
 

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Obviously you should check with your accountant on this, but I am pretty sure that the rented space that is used for business purposes is what you would be able to claim.

So if the condo is a 2 bedroom, and you use 1 of the bedrooms for the office space, as well as the storage unit for storage of paperwork then I believe you would calculate the % of square footage used, and claim that portion of the rent towards business purposes.
 

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I think your company can rent the apt from your mon for 1200 more less. You can rent a room from your company for 400 more or less.
 

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Echoing what the others have said, your personal living space is not a tax-deductible expense for your corporation. You can legally deduct the costs of an office space for the corporation, and there are a couple of ways to do so. Talk to your accountant about which is most beneficial in your situation.
 
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