Can a self-employed individual who is not registered for HST (small supplier) claim the GST rebate on business use of home? I haven’t done so in the past but TaxCycle keeps asking me if I want to claim it.
I don’t think so. How would you rationalize that? What employer has paid them, including GST, for use of their home?
You’re right @Nezzer. Good point. The Taxcycle review message made me question myself for a minute. Thanks for the quick reality check.
No problem. I have to think about it every time I answer that prompt, too. It makes sense if a self-employed person is a GST registrant, and the payment of “rent” (i.e. workspace in the home) would be considered commercial - thus GST/HST taxable. But, even so, the GST “paid” to the home-owner becomes taxable the next year - TaxCycle automatically carries this forward.
“and the payment of “rent” (i.e. workspace in the home) would be considered commercial”
That wouldn’t work either …
Perhaps the message could just be prompted only when the business number is on the T2125 or T2042.
Alternatively, the preparer could chose the prompt for all files or only those with a business number.