Dale Jackson

Personal Finance Columnist, Payback Time

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Being on your own in the working world has its advantages. In addition to flexibility, self-reliant employment has some generous tax perks.

According to the Canada Revenue Agency there are two basic home-office situations: working for yourself or being required by an employer to have an office at home as your principal place of work, or to be used for regular meetings with clients or customers.

If you work from home you must first determine how much of your home is used as your workspace. Instead of measuring, some tax experts suggest making it simple by considering your work area to be one-fifth of your home. That would allow you to deduct one-fifth of home expenses, including utilities, repairs and insurance.    

People who work for themselves can also deduct a portion of mortgage interest and property taxes.

If an employer requires you to use your own car, you can deduct a portion of gas and oil, repairs, maintenance, insurance, license fees, capital cost allowance (depreciation), auto club dues, loan interest, and more. The employer must sign Form T2200 to verify that use of vehicle was necessary.

If you work for yourself, a T2200 is not necessary because…you are your own boss.