On March 31st, we posted a blog on the tax benefits of working from home. The information contained in March 31st blog still applies, but we want to make you aware of a potentially easier reporting method.
The Federal Government proposed a “Simplified T2200” during their Fall Economic Statement. Under this proposal, the simplified T2200 option would allow you to make a claim to deduct up to $400 in expenses in cases where you were forced to work from home due to the COVID-19 outbreak.
With the simplified T2200, you would not need to include an itemized expenses list and you would not be required to have your employer complete a standard T2200.
While not finalized, here is what a proposed Simplified T2200 might look like. At this point, the simplified T2200 is appears to be applicable only to the 2020 tax filing year.
Of course, you will still have the option of using the detailed T2200 method, should you choose. As many of you will no doubt be aware, the standard T2200 requires a greater level of detail and work on the taxpayer’s part.
Claiming home expense deductions requires keeping track of eligible home expenses like heat, work supplies, utilities, home office repair/maintenance, and providing workspace square footage and total home square footage. You are also required to have your employer complete the T2200 tax form on your behalf.
If you had to work from home more than usual due to COVID-19 but are unsure if the simplified or standard T2200 would be best for you, please contact us. We can help you determine which claim route would be best for you.
Weekly Update: By The Numbers
|North America||Friday Close||Weekly Change||Weekly % Change||YTD % Change|
|Canada – S&P TSX Composite||17,549||28||0.16%||2.85%|
|USA – Dow Jones Industrial Average||30,046||-172||-0.57%||5.28%|
|USA – S&P 500||3,663||-36||-0.97%||13.37%|
|USA – NASDAQ||12,378||-86||-0.69%||37.95%|
|Gold Futures (USD)||$1,843.50||$1.40||0.08%||21.28%|
|Crude Oil Futures (USD)||$46.56||$0.49||1.06%||-23.93%|
|CAD/USD Exchange Rate||€ 0.7833||€ 0.0060||0.77%||1.73%|
|Europe / Asia||Friday Close||Weekly Change||Weekly % Change||YTD % Change|
|MSCI World Index||2,622||-18||-0.68%||11.20%|
|Switzerland – Euro Stoxx 50||3,486||-53||-1.50%||-6.99%|
|England – FTSE 100||6,547||-3||-0.05%||-13.35%|
|France – CAC 40||5,508||-101||-1.80%||-7.86%|
|Germany – DAX Performance Index||13,114||-185||-1.39%||-1.02%|
|Japan – Nikkei 225||26,653||-98||-0.37%||12.66%|
|China – Shanghai Composite Index||3,347||-98||-2.84%||9.74%|
|CAD/EURO Exchange Rate||€ 0.6463||€ 0.0064||1.00%||-5.84%|
|Fixed Income||Friday Close||Weekly Change||Weekly % Change||YTD % Change|
|10-Year Bond Yield (in %)||0.8930||-0.0760||-7.84%||-53.47%|
Sources: Advisor.ca, Yahoo! Canada Finance, CNBC.com
This information is provided for general information purposes only. It does not constitute professional advice. Please contact a professional about your specific needs before taking any action.