Did You Know
If you have a business in your home and you have undeducted work space in home expenses because you had a business loss in a taxation year or previous taxation years, that you could lose the undeducted expenses carried forward?
Generally, you are restricted from deducting work space in home expenses if you already have a business loss, but those work space in home expenses that qualify may be carried forward and deducted in future years in which you have positive business income. However, if you temporarily cease business for a full taxation year, those undeducted work space in home expenses that you carried forward expire. To keep those expenses from expiring, you must operate your business at some time in each taxation year.
Careful planning with a Chartered Professional Accountant is warranted. Contact Keith Anderson, BCom, CPA, CA-IT, CITP at (780) 447-5830 if you need advice.