,canada ,cu/oms #a & ,rev5ue ,ag5cy ,9t]pret,n ,bullet9 ,subject3 ,9come ,tax ,act ,"w ,space 9 ,home ,exp5ses ,numb]3 ,,it-#ead ,date3 ,febru>y #c1 #aihi ,ref];e3 ,subsec;n #ah7#ab7 ,tax ,re=m ,? bullet9 -;ts on am5d;ts 6! ,act result+ f ,tax ,re=m4 ,applic,n ,! provi.ns ( subsec;n #ah7#ab7 4cuss$ 9 ? bullet9 >e applica# 6fiscal p]iods -m5c+ af #aihg4 #a ,summ>y a#a ,exp5ses 9curr$ 9 e>n+ 9come f a busi;s >e norm,y deducti# 9 -put+ 9come 6! ext5t !y >e r1sona#4 ,? bullet9 d1ls )! 3di;ns & re/ric;ns plac$ on ! deductibil;y ( s* exp5ses :5 !y relate 6an (fice or o!r "w space 9 ! home ( an 9dividual4 ,! "w space m/ 2 us$ = specifi$ purposes &! exp5ses relat+ "!to _c exce$ ! 9dividual's 9come f ! busi;s =a tax,n ye>4 ,! bullet9 al d1ls )! c>ry =w>d ( any excess 6! immly foll[+ tax,n ye>4 ,4cus.n & ,9t]pret,n 7p>agraph #a7 #a4 ,subsec;n #ah7#ab7 provides t a self-employ$ 9dividual1 9 -put+ 9come f a busi;s =a tax,n ye>1 is n 5titl$ 6any deduc;n = exp5ses o!rwise deducti# "u ! ,act relat$ 6any "p 7"h9af ref]r$ 6z 8"w space07 (a self- 3ta9$ dome/ic e/abli%;t 9 : ! #b ,,it-#ead b#a 9dividual resides1 except ": ! "w space is ei 7a7 ! pr9cipal place (! busi;s (! 9dividual1 or 7b7 us$ exclusively 6e>n busi;s 9come & on a regul> & 3t9u\s basis = meet+ cli5ts1 cu/om]s or pati5ts (! 9dividual 9 respect (! busi;s4 ,! expres.n 8self-3ta9$ dome/ic e/abli%;t0 is def9$ 9 subsec;n #bdh7#a7 z a dwell+ h\se1 a"p;t or o!r simil> place ( resid;e 9 : place a p]son z a g5]al rule sleeps & eats4 ,": an 9dividual's 9come =a tax,n ye> 9cludes 9come f a --------------------------------------#b busi;s ! fiscal p]iod ( : does n co9cide )! cal5d> ye>1 a ref];e 9 ? bullet9 6a tax,n ye> %d 2 r1d z a ref];e 6a fiscal p]iod (! busi;s 5d+ 9 ! tax,n ye>4 #c ,pr9cipal ,place ( ,busi;s a#b 7p>agraph #b7 #b4 ,": an 9dividual has two or m places ( busi;s 9 respect (! same busi;s1 ! "w space m/ 2 ! pr9cipal place ( busi;s 9 ord] 6meet ! require;t 9 #a7a7 abv4 ,! ^w 8pr9cipal0 is n def9$ 9 ! ,act b x is 3sid]$ t ! ^ws 8*ief0 & 8ma90 >e synonym\s 6x4 ,":1 = example1 a room 9 a 3tractor's resid;e is us$ 6a3ompli% ! func;ns relat+ 6a 3tract+ busi;s1 s* z1 rcvg "w ord]s1 bookkeep+1 pur*as+ & prep>+ payrolls :ile ! rema9+ activities (! busi;s1 ! p]=m.e (! 3tracts1 >e c>ri$ \ at ! cu/om]'s loc,n1 ! room wd 2 3sid]$ z ! 3tractor's pr9cipal place ( busi;s4 ,simil>ly1 ! "w space 9 a f>m]'s home utiliz$ 6op]ate ! f>m+ busi;s wd norm,y 2 ! f>m]'s pr9cipal place ( busi;s4 ,! room us$ 0! 3tractor &! f>m]'s "w space cd al 2 us$ = p]sonal purposes s9ce !y ne$ n 2 us$ #d ,,it-#ead b#b exclusively =! busi;s 9 ord] 6meet ! #a7a7 require;t4 ,regul> & ,3t9u\s ,basis 7p>agraph #c7 #c4 ,! f/ require;t ( #a7b7 abv is t ! "w space m/ 2 us$ exclusively 6e>n busi;s 9come4 ,? require;t is met if a segregat$ >ea1 s* z a room or rooms1 is us$ 9 a busi;s &= no o!r purpose4 ,! second require;t is t ! "w space m/ 2 us$ = meet+ cli5ts1 cu/om]s or pati5ts on a regul> & 3t9u\s basis4 ,! regul>;y & frequ5cy ( meet+s 9 a "w space 6meet ! require;t ( 2+ on a regul> & 3t9u\s basis w dep5d on ! nature (! busi;s activ;y & is det]m9$ on ! facts ( ea* situ,n4 ,h["e1 a "w space 9 respect (a busi;s : norm,y requires 9frequ5t meet+s or frequ5t meet+s at irregul> 9t]vals wd n meet ! require;t4 ,a home (fice us$ 0a doctor 6meet "o or two pati5ts a week is #e ,,it-#ead c#b an example (a "w space : wd n 2 3sid]$ us$ on a regul> & 3t9u\s basis = meet+ pati5ts4 ,on ! o!r h&1 a "w space us$ 6meet an av]age ( #e pati5ts a "d = #e "ds ea* week wd cle>ly 2 us$ = t purpose on a regul> & 3t9u\s basis4 ,un.s #a7a7 abv applies1 bo? require;ts 9 #a7b7 abv m/ 2 met 9 ord] 6deduct exp5ses relat+ 6a "w space4 ,re/ric;n on ,deduc;n 7p>agraph #d7 #d4 ,an 9dividual :o c>ries on a busi;s 9 a "w space1 & has met ! te/ 9 ei #a7a7 or 7b7 abv1 w 2 a# 6deduct only ! exp5ses relat$ 6! "w space 6! ext5t !y >e o!rwise deducti# & d --------------------------------------#c n exce$ ! 9come f ! busi;s =! tax,n ye>1 c>ri$ on 9 ! home or else":1 det]m9$ prior 6deduct+ ! exp5ses relat$ 6! "w space4 ,?us1 s* exp5ses =a tax,n ye> _c cr1te or 9cr1se a #f ,,it-#ead a#c loss = 9come tax purposes f ! busi;s = : ! "w space is us$4 ,! exp5ses relat$ 6! "w space cd 9clude1 = example1 ! prorat$ por;n ( r5t1 capital co/ all[.e1 prop]ty 9sur.e1 prop]ty taxes1 mortgage 9t]e/ or op]at+ co/s s* z h1t+ & lie metres ( floor space us$4 ,h["e1 ! r1sona# basis %d al take 963sid],n ! p]sonal use1 if any1 (a "w space t is an 9dividual's pr9cipal place ( busi;s z describ$ 9 #b abv4 ,! pr9cipal resid;e protec;n f capital ga9s does n apply 6a "w space = : capital co/ all[.e has be5 claim$ 7see ! curr5t issue ( ,,it- #abj74 ,al? teleph"o1 3sum$ supplies & o!r simil> exp5ses may relate 6! busi;s1 !y d n relate 6! "w space &1 acly1 >e n subject 6! 3di;ns & re/ric;ns ( subsec;n #ah7#ab74 #g ,c>ry ,=w>d ( undeduct$ b#c ,exp5ses 7p>agraph #e7 #e4 ,! por;n (! o!rwise deducti# exp5ses relat$ 6a "w space t _c 2 deduct$ 9 a tax,n ye> 0r1son only ( #d abv w 2 3sid]$ an exp5se relat$ 6! "w space 9 ! immly subsequ5t tax,n ye>4 ,": 9 t immly subsequ5t tax,n ye> ! te/ 9 #a7a7 or 7b7 abv is met1 ! por;n (! exp5ses c>ri$ =w>d & any fur!r actual exp5ses 9curr$ 9 t ye> may 2 deduct$ 6! ext5t p]mitt$ 0#d abv1 & any excess is c>ri$ =w>d 6! next ye>4 ,?us an 9def9ite c>ry =w>d is provid$ z l;g z ei #a7a7 or 7b7 abv is met on a 3t9u\s basis4 #h