Can my corporation pay for my home office?
Yes, within limits — typically by reimbursing the business-use share of home costs. The structure matters, because rent paid to yourself has tax consequences.
Owner-managers working from home have real costs, and there are legitimate ways for the corporation to bear its share — but the structure matters more than people expect.
The clean route: proportional reimbursement
Measure the workspace as a share of the home, and the corporation reimburses that share of operating costs — utilities, internet, maintenance, and similar. Reasonable, documented, and tied to a space genuinely used for the business.
The route that needs advice: charging rent
The corporation can pay you rent for the space — but that is rental income on your personal return, and claiming certain costs against your home (notably capital ones) can put your principal residence exemption at risk on those portions. This is a plan-first conversation, not a bookkeeping default.
What never works
Round numbers with no measurement, a “home office” that is the kitchen table, or mortgage principal as an expense. CRA sees home-office claims constantly; documentation is the difference between routine and painful.
This is general information, not tax advice for your situation. Book a call and a Canadian accountant will give you the answer for your business.
Common questions
What percentage of my home can I claim?
Whatever the workspace genuinely represents — measured area, adjusted for shared use. There is no safe standard percentage; there is only your real one, documented.
Can the corporation pay part of my mortgage?
Mortgage interest can enter the calculation in some structures, but principal never, and touching home capital costs risks your principal residence exemption. Get advice before the corporation pays anything mortgage-related.