Comments on: Deductions From Employment Income

By: Paul O'Connell

Paul O'Connell — Fri, 27 Jan 2012 17:04:39 +0000

Hello: I’m owed $1200 for freelance work that I will never be able to collect. Even though this former employer acknowledges the debt, he refuses to pay me. Can I deduct this from my regular income as a business loss?

By: Tax Guy

Tax Guy — Thu, 19 Jan 2012 17:49:29 +0000

Nana,
Whether you can deduct the interest or not is a question of fact. I cannot say unless I was preparing your returns for the tax year.

By: Nana

Nana — Thu, 19 Jan 2012 17:31:05 +0000

Hello Tax Guy,

I get T2200 each year. Not commissioned employee but required to work > 50% out of home office.
Can I deduct mortgage interest ? (pro-rated to part of home i use) ?

Thanks!

By: Tax Guy

Tax Guy — Mon, 21 Mar 2011 08:03:32 +0000

I sugges you give a read through http://www.cra-arc.gc.ca/E/pub/tp/it352r2/it352r2-e.html

By: Dave Duke

Dave Duke — Sun, 20 Mar 2011 16:46:12 +0000

Hi tax Guy,
I still didn’t get answer on my reply above. I read the article but it doesn’t answer on my question.
Does it matter what percentage of income is salary, and what commission, in order to claim property tax and home insurance based on the proportion of home I use for business purposes. In my case commission is only 15%, of total income.
Thanks!

By: Tax Guy

Tax Guy — Sun, 20 Mar 2011 02:38:13 +0000

Line 135 to 143. Whichever applies.

By: Jeff

Jeff — Sat, 19 Mar 2011 17:56:17 +0000

Thanks Tax Guy for answer so quickly.

when I report my tax income according what you said.

since my T4A ( professional income) is less than what I spent(computer and car expense,telephone etc).

My business-use-of-home expense does not add to deductible to cost?

I means on line 9954 of T2125.

Where should I claim this expense?
I’d appreciate you answer me quesion.

By: Tax Guy

Tax Guy — Sat, 19 Mar 2011 15:14:48 +0000

If your getting T4′s, your an employee and you report the income on line 101.

By: Jeff

Jeff — Sat, 19 Mar 2011 13:56:26 +0000

Hi tax Guy,
Thanks for your great explaination. it is very useful,
my question is :
I am a self-employed and work for several comapny.
some empoyers give me T4 slip and others give me T4A.

What should I report my business income with T4 slip?

Do i should add all T4 slips together and input into T2125 for my profession income?

Thanks.

By: Dave

Dave — Wed, 16 Mar 2011 16:37:47 +0000

Yes, I claim 1/5th of my home for home office. The point of question above is that only commission emplyees have right to claim home property tax and home insurance. And in my case the commision is only 15% of total income. So the question is does it matter what percentage of income is sallary and what commission, in order to charge 1/5th of property tax and home insurance?
Thanks!