Home-based Business & GST

by Sole Proprietor
(Canada)

Hello,

I am a sole proprietor of an Educational Consultant Services based in my home.

I am filing GST returns for the 1st time and would like to know if I can claim GST paid on home utilities (ie. electrical, water, gas, phone, etc.) on my GST return.

Thank you kindly.



image of fancy scroll lines



Home office expenses are accounted for on Form T2125 page 3.

It is my understanding that you claim the home office expenses including tax ... which then gets prorated according to business use and that do not take input tax credits.

However, I couldn't find a reference anywhere where it specifically says you can't. You definitely cannot claim 100% of the GST/HST paid.

You may want to call CRA and see what they say. If you do phone CRA, I would appreciate you posting back here with their response.






P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.


Comments for Home-based Business & GST

Click here to add your own comments

Mar 21, 2013
 Business Expenses
by: Lisa

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/bsnssxpnss/menu-eng.html

As a rule, you can deduct any reasonable current expense you paid or will have to pay to earn business income. The expenses you can deduct include any GST/HST you incur on these expenses less the amount of any input tax credit claimed.

Since you cannot deduct personal expenses, deduct only the business part of expenses from business income. In addition, you cannot claim expenses you incur to buy capital property.

Note
When you claim the GST/HST you paid on your business expenses as an input tax credit, reduce the amounts of the business expenses you show on Form T2125, Statement of Business or Professional Activities, by the amount of the input tax credit. Do this when the GST/HST for which you are claiming the input tax credit was paid or became payable.

Click here to add your own comments

Return to GST HST.
Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.

Enjoy A Tea Break With
Me Today. Let's Chat!

Use the search feature to quickly find the
information you're looking for.



SHORTEN
Your Learning Curve!

 
How to do MonthEnd | Month-End ProceduresLearn what to do after you have entered your data. Click on the image to learn more.



Warm up your tea cup and check out these chats ...

Click on image above to read the chat.








Join Me On Facebook

Help support this site by "liking" me! Here's where I post current information.

Listed Under Websites NOT Local Business.
This website is NOT associated with the business operating in Bonnyville AB.


A Handy Reference

 
Bookkeeping checklists that are a handy reference.Bookkeeping checklists that are a handy reference. Click on the image to learn more.