Hello I have a client that moved in the middle of the year, she has a T2125 for the business however I need to calculate the home office expenses for the first 7 month in one property and for the rest of the months in another. Do I amalgamate the both property expenses and square fee for calculations or create another T2125 just for the home office
I usually do a quick calculation on an excel spreadsheet for each house. Override the field 7P on the T2125 with the allowable claim (the combined results from both houses).
Obviously I keep great notes and ensure the client has a copy of that calculation and understands why that section of the form has no details.
@rachelavryl suggested a good option, but I would say it’s up to you. Shouldn’t matter either way for CRA, except that in tax software, if you put it on a separate T2125 that shows no other income, it will default to carry forward (you can’t use home office expenses to create or increase a loss). So, even if you use the second T2125 to do the calculation, you’ll have to manually add that expense somewhere on the “main” T2125.