27 November 1995 External T.I. 9529005 - WORK SPACE IN HOME

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues:

A faculty member of a university has requested the university to certify on form T2200 that he is required to maintain an office in his home. This employee lives 120 kilometres from the university. The employee is provided with an office by the university and there is no express term in his employment contract which requires him to maintain an office in his home. The issue is whether form T2200 can be so certified.

Position:

No

Reasons:

The employee is not required, tacitly or otherwise, by his employer to maintain an office in his home.

		952900
XXXXXXXXXX	M. Eisner

Attention: XXXXXXXXXX

November 27, 1995

Dear Sirs:

Re: Work Space In Home

This is in reply to your letter of October 25, 1995 concerning work space in the home and form T2200.

You have indicated that an employee, who is a faculty member of XXXXXXXXXX (the University), has requested the University to certify form T2200 with respect to a work space in his home. The request has been made because the employee resides approximately 120 kilometres from the University. However, the faculty member is not required to maintain an office in his home under the terms of his employment contract and is provided with an office at the University.

Our Comments

The Department's general position on the eligibility of employees to claim expenses in respect of work space in the home is set out in Interpretation Bulletin IT-352R2 which has been enclosed for your convenience.

As indicated in paragraph 5 of IT-352R2, work space in the home expenses include a proportion of rent (if the home is rented) and supplies such as the cost of fuel electricity, light bulbs, cleaning materials and minor repairs. In order for an employee to be eligible to claim such expenses, the employee must satisfy a number of conditions. One of the conditions is that the employee must be required by the contract of employment to pay for such rent and/or to provide and pay for such supplies. Although ordinarily this condition necessitates that there be an express requirement within the terms of a written employment contract, it is the Department's general position that this condition may also be considered to have been satisfied where it is tacitly understood by the employer and an employee that work space be provided by the employee. With respect to this condition, which is reflected in subparagraphs 8(1)(i)(ii) and (iii) of the Income Tax Act (the Act), item 10(a) of the prescribed form T2200 asks the employer whether the employee was required under a contract of employment to use a portion of his or her home.

In the circumstances under consideration, the employee has established an office in his home as a result of the distance between his residence and the University. However, notwithstanding this point, it seems clear to us that since the University provides the employee with an office, he is not required to maintain an office in his home. It is, accordingly, our view that form T2200 should not be certified in that regard.

We trust our comments will be of assistance to you.

Yours truly,

P.D. Fuoco
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch