Gents,
I have a client who wanted to claim the mortgage Interest for his home as he has T2200 that says he is allowed to work from home. I told him he cannot as T4 employee even if he makes commission and has T2200 that states he can work from home.
But under what conditions can he claim Mortgage Interest as tax deductible?
His personal home interest is only deductible if he is self employed (running his own, independent business) from the home. And ONLY the proportion of it in relation to the whole house that he uses for the office. None of the principal is deductible. The same percentage of utilities and property tax may also be claimed.
Also, if you are renting out a section of your principal residence, you claim a percentage of the expenses that correspond to the rented space. An example would be renting a basement suite.