# TAX-06 — Business use of home

**Flag: Current** — Verified against the live source. Safe to cite.

**Business use of home:** deductible where the space is the principal place of business, or is used only to earn business income and regularly to meet clients. Allocate on a reasonable basis. **Cannot create or increase a business loss;** the unused amount carries forward. Line 9945, T2125 Part 7. Claiming CCA on the business portion triggers capital gain and recapture rules on sale

## Sources

- Business-use-of-home (primary): https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/completing-form-t2125/business-use-home-expenses.html
- https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002/t4002-1.html (mirror): https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002/t4002-1.html

Jurisdiction: FED · Verified 2026-08-27 · Review: legislative