CRA to crackdown on home office and auto claims in 2009
I just heard a rumor that the Canadian Revenue Agency is getting ready to focus it’s attention on taxpayer claims of office in the home and automobile claims for the 2009 tax year. A letter will be going out to tax preparers about this very soon.
If you are planning to claim either deduction on your 2009 tax return, be sure to have the proper documentation to support these claims. For an office in the home, keep all of your utility receipts, as well as receipts for rent, mortgage interest, etc. Also remember that the percentage of these expenses that is deductible is based on the ratio of your office square footage to the total square footage of your home. The office must also be used solely for business purposes.
Claims for automobile expenses must be supported by receipts for fuel, maintenance, etc, as well as a log which shows the trips made for business purposes vs. personal use. Remember that driving to and from work is not considered a business trip.
