The costs of home office can only be deductible when:
- The place where individual principally performs the duties of the office or employment or
- Used exclusively during the period in respect of which the amount relates for the purpose of earning income from the office or employment and used on a regular and continuous basis for meeting customers or other persons in the ordinary course of performing the duties of the office or employment
If the home office is in rented property, the percentage of rent and any maintenance cost can be deductible only if it is related to the home office.
For an employee, the deductions of home office costs include maintenance costs such as fuel and electricity, light bulbs, cleaning materials and minor repairs. For a salesperson, he can deduct the maintenance cost in addition to property taxes and house insurance program.
Note that the deduction of home office is limited to the employment income. That means the home office cost cannot be used to create an employment loss. However, the excess amount can be carried forward to the following year.