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One blog post closer to clean books.
Each blog post from the Castle team is packed with practical tips, real-world experience, and clear answers to common bookkeeping questions. Whether you're sorting expenses or planning for tax time, you'll find guidance to help you run your business with clarity and confidence.
Terms of Service
Welcome to Castle! These terms of service outline the rules and regulations for the use of our bookkeeping services.
By accessing this website and using our services, you accept these terms and conditions in full. Do not continue to use Castle services if you do not accept all of the terms and conditions stated on this page.
Castle offers professional bookkeeping services including transaction categorization, reconciliations, financial reporting, GST/HST filing, and other related services as agreed upon with the client.
2. Billing and Payments
All services provided by Castle are billed on a recurring basis unless otherwise
agreed upon. Payments are due upon receipt of invoice. We accept payment via credit card, debit card, and electronic funds transfer.
3. Cancellation and Refund Policy
Clients may cancel services at any time by providing 30 days’ notice in writing or via email. Refunds for prepaid services will be prorated based on the remaining unused portion of the services.
4. Privacy Policy
Our privacy policy outlines how we collect, use, and protect your personal information. We do not sell or share your information with third parties without your consent, except as required by law.
5. Liability
Castle will perform all services with reasonable care and skill. However, we do not accept liability for losses resulting from acts of nature, third-party errors, or misuse of financial information or reports by the client.
6. Amendments
Castle reserves the right to amend these terms of service at any time. Amendments will be effective immediately upon posting on this website.
7. Contact Us
If you have any questions about this privacy policy or our privacy practices, please contact us at:
Castle
316 1st Ave NE
Phone: 587-872-0602
Email: info@bookwithcastle.com
One blog post closer to clean books.
Each blog post from the Castle team is packed with practical tips, real-world experience, and clear answers to common bookkeeping questions. Whether you're sorting expenses or planning for tax time, you'll find guidance to help you run your business with clarity and confidence.
Home Office Expenses — What You Can Write Off (and What You Can’t)
If you run your business from home — even part-time — you may be entitled to home office deductions. This is one of the most commonly claimed expense categories in Canada, and also one of the most frequently overclaimed.
The CRA has clear rules. Let’s walk through them properly.
1. Who Can Claim Home Office Expenses?
You can claim home office expenses if either of the following applies:
- Your home is your principal place of business, or
- You use a specific area of your home regularly and exclusively to earn business income
You don’t need a separate room, but the space must be clearly defined and genuinely used for business.
2. How the CRA Calculates Your Claim
Home office expenses are claimed based on square footage.
Formula:
(Office space ÷ Total home space) × eligible expenses
Example:
- Apartment size: 800 sq ft
- Office space: 80 sq ft
- Business-use percentage: 10%
You may claim 10% of eligible home expenses.
If the space is shared (e.g. kitchen table), the CRA may expect an additional time-use adjustment.
3. Expenses You Can Write Off
You may deduct the business-use portion of:
- Rent
- Mortgage interest (not principal)
- Property taxes
- Home insurance
- Utilities (heat, electricity, water)
- Internet
- Maintenance and minor repairs related to the whole home
4. Expenses You Cannot Write Off
These are common mistakes:
- Mortgage principal
- Home purchase costs
- Renovations that increase property value
- Personal décor or furniture
- Entire utility bills (without proration)
5. Repairs: Partial vs. Full Deductibility
- Repairs affecting the entire home → claim the business portion
- Repairs only in the office (e.g. painting the office) → 100% deductible
6. CCA (Depreciation) Warning
You can technically claim CCA on your home, but this is often a bad idea.
Why?
- It may trigger capital gains tax when you sell
- It complicates future tax filings
For most small businesses, we advise against claiming CCA on a principal residence unless there’s a specific strategic reason.
7. Documentation the CRA Expects
You should keep:
- Floor plan or square footage calculation
- Lease or mortgage statements
- Utility bills
- Internet bills
- Insurance documents
- Repair invoices
- Photos of the workspace (helpful in audits)
8. Loss Limitation Rule
Home office expenses cannot create or increase a business loss.
If your business income is low:
- Excess home office expenses are carried forward
- They can be used in a future profitable year
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