Sole Proprietor — Furnace & Hot Water

Forum|Forum|4 years ago
March 17, 2022
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Hello!

I'm a sole proprietor working from home and recently had to have the furnace replaced. Is this expense something I can claim a percentage of like I can with hydro, heat, etc?

On that note, the hot water tank is a rental from Reliance. Is a portion of that cost considered an expense as well?

I did some digging but couldn't find a clear answer for either of these. Any help is appreciated!

Carolina_22

As per the Canada Revenue Agency (CRA):

Maintenance and minor repair costs
The maintenance and minor repair costs generally fall into one of the following categories:

Expenses you paid that relate to the workspace as well as other areas of the home. You can claim the percentage of those expenses that relate to the workspace.
- Example: Minor repairs of the home furnace or air-conditioner or the purchase of household cleaning products.
Expenses related to the workspace only. You can claim the total amount of the expenses if the amount paid is reasonable.
- Example: Purchase of light bulbs, repainting the workspace, or repairing walls or ceilings after the installation of phones, fax machines, or other office equipment you used in the workspace.
Expenses related to a part of the house that you did not use as a workspace. You cannot claim any part of those expenses.
- Example: Repainting a bedroom that is not used for work.