# Business use of home - Repairs/maintenance

**URL:** https://www.protaxcommunity.com/t/business-use-of-home-repairs-maintenance/6913
**Category:** Tax Topics
**Created:** [April 15, 2023, 5:39am UTC](https://www.protaxcommunity.com/t/business-use-of-home-repairs-maintenance/6913 "2023-04-15T05:39:18Z")
**Posts on this page:** 7
**Page:** 2

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### Author: ![jimt](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/jimt/32/2531_2.png) [@jimt](https://www.protaxcommunity.com/u/jimt)
#### Post date: [April 15, 2023, 11:55pm UTC](https://www.protaxcommunity.com/t/business-use-of-home-repairs-maintenance/6913/21 "2023-04-15T23:55:02Z")

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No one is going to jail

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### Author: ![benoit.associes1](https://avatars.discourse-cdn.com/v4/letter/b/858c86/32.png) [@benoit.associes1](https://www.protaxcommunity.com/u/benoit.associes1)
#### Post date: [April 16, 2023, 12:32am UTC](https://www.protaxcommunity.com/t/business-use-of-home-repairs-maintenance/6913/22 "2023-04-16T00:32:48Z")

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Court is adjourned.

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### Author: ![mjeconsulting](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/mjeconsulting/32/253_2.png) [@mjeconsulting](https://www.protaxcommunity.com/u/mjeconsulting)
#### Post date: [April 16, 2023, 1:03am UTC](https://www.protaxcommunity.com/t/business-use-of-home-repairs-maintenance/6913/23 "2023-04-16T01:03:42Z")

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If after I explain that something cannot be claimed and why. If they continue to tell me what they can claim and how to claim it, I close up the file and say. Here you go H&R Block is 10 minutes away.

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### Author: ![joe.justjoe1](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/joe.justjoe1/32/220_2.png) [@joe.justjoe1](https://www.protaxcommunity.com/u/joe.justjoe1)
#### Post date: [April 16, 2023, 1:03am UTC](https://www.protaxcommunity.com/t/business-use-of-home-repairs-maintenance/6913/24 "2023-04-16T01:03:44Z")

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> [@jimt](#):
>
> No one is going to jail

.  
_“No one is going to jail”_  
.  
Easy to find examples…  
In a simple browse, I found more examples of jail being imposed that I had expected

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.  
“TORONTO, Feb. 7, 2020 /CNW Telbec/ – The Canada Revenue Agency (CRA) announced that George Nkoke Nnane (Nnane) of Richmond Hill, Ontario was sentenced on February 6, 2020 in the Superior Court of Justice in Toronto to three years in jail on one count of fraud under the Criminal Code of Canada, and to 12 months in jail on a second count of fraud under the Criminal Code of Canada, to be served concurrently. Nnane was found guilty by a jury of these charges on October 29, 2019.”  
“A CRA investigation revealed that Nnane, the Chief Executive Officer of a tax preparation business, Golden Capital Management Inc. (GCMI), prepared individual tax returns for GCMI’s clients with false charitable donations credits, as well as fictitious business and rental losses.”

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### Author: ![jimt](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/jimt/32/2531_2.png) [@jimt](https://www.protaxcommunity.com/u/jimt)
#### Post date: [April 16, 2023, 1:36am UTC](https://www.protaxcommunity.com/t/business-use-of-home-repairs-maintenance/6913/25 "2023-04-16T01:36:05Z")

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Exactly, the only example I know of in my 35 years was a guy that came to us after he was under audit. He had totally fabricated expenses (employment expenses lol) out of thin air. Even delivered to us a two inch stack of hand written gas receipts with the ink colour changed every twenty or so slips. Special investigations showed up and took what ever documents we had, and one of my guys had to go to court. AND wait for it… he didn’t go to jail. Had to pay taxes evaded plus penalties and interest etc. AND he is still doing the same job as he had before (he made his boss a lot of money)

Oh…  
Actually, I have another one. Same thing showed up after audit started.

Guy showing huge losses. Turns out was doing more than half his sales cash and not recording but… of course he thought it would be great to write off the input costs. Auditor gave him a bill for about 50K and I advised him to bend over and take it… So he fired me. Got some idiot to represent him that was going to “fight it”. So the auditor said “let me see your wife’s accounts”… Last I heard he lost his wife and declared bankruptcy, BUT didn’t go to jail.

Bottom line, most cases come down to an offer to settle before going to court and tax act paragraph numbers get drawn. What you see in court transcripts are mostly idiots that don’t know when to make a deal.

Ps: My lawyer a top litigator, “20K or less… write the cheque”

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### Author: ![gamborg](https://avatars.discourse-cdn.com/v4/letter/g/edb3f5/32.png) [@gamborg](https://www.protaxcommunity.com/u/gamborg)
#### Post date: [April 16, 2023, 2:09pm UTC](https://www.protaxcommunity.com/t/business-use-of-home-repairs-maintenance/6913/26 "2023-04-16T14:09:43Z")

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**_Eware of taking CCA on any portion of your home being used for business. Real-estate seldom depreciates. Someday the home will be sold – even if it is deemed sold upon death. Most likely, there will be a “recapture of depreciation” which in total will be added to income in the year of sale._**

**_If you look over the T2125 form in the tax program, go down to the “Use of home” section. You will see that you would only claim the portion fo those expenses that relate to the square footage of the business If the home is 1000 sq. ft. and the business section is 300 sq ft, only 3/10 of the renovation that relate to the business would be expensed. No way can you claim anything related to the master bedroom, bathroom, kitchen etc. unless it is a type of business requiring the use of these rooms._**

**_Pat Gamborg_**

**_PAT’s OFFICE_**

**_1354 Fed Rd._**

**_Bear River NS B0S 1B0_**

**_902-467-3358_**

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### Author: ![keith1](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/keith1/32/451_2.png) [@keith1](https://www.protaxcommunity.com/u/keith1)
#### Post date: [April 17, 2023, 2:45pm UTC](https://www.protaxcommunity.com/t/business-use-of-home-repairs-maintenance/6913/27 "2023-04-17T14:45:42Z")

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My take (with only 56.5 tax seasons’ experience):

Re-shingling with the same type of shingles is a repair (re-roofing implies replacement of the underlying structure - calling re-shingling “re-roofing” can get you sued for misrepresentation in a real estate sale).

Replacement of leaking and/or drafty windows is a repair.

Repainting is arguable. Some retriming, spackling and touching up is to be expected after replacing a window, but repainting the entire room would have to be considered separately, considering the age and condition of the pre-existing paint.

Solar panels would be a capital expenditure. I would recommend not claiming CCA on a principal residence, or any part of it

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