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Hi Guys. I am a sole proprietorship, home-based business and use QuickBooks Online. I want to claim a part of my house rent as a business expense. Where can I do it?
With working from home becoming the new normal, it's likely that many business owners and even their employees will be looking to claim a portion of their home expenses as business expenses. QuickBooks Online makes it easy to track your bills and expenses, and I'd like to go over that with you.
Creating an expense is easy. You'll just need to follow the steps below and you'll be able to enter rent as an expense in your books.
Select the + New button.
Specify a supplier in the Payee field, this could be your landlord.
Enter the Payment account that was used.
Enter the Payment date and Payment method for the expense.
Optionally enter a Reference number and Description to help keep track of the expense.
Enter the amount and applicable tax codes.
Click Save and close.
When selecting the payment account, or specifying a category for this expense, it may be beneficial to consult with an accountant. An accountant may advise you to create a specific account in your Chart of Accounts to track these specific expenses. They may also have other suggestions as to how you can account for this transaction, such as claiming it on your annual income tax. If you're already working with an account, I highly recommend inviting them to QuickBooks. Use the My Accountant tab on the left, enter their email address, and hit Invite. Once they accept the invite they'll be able to login and work alongside you to complete your business's books both accurately and efficiently.
If you aren't working with an accountant just yet, we have a database of QuickBooks-certified accountants that you can draw from. Navigate to the My Accountant tab then select the Find a pro to help button and you'll have access to accountants with a wealth of knowledge and experience. They'll be more than happy to help!
I want to leave you with an article that you may find helpful for entering expenses. I also suggest visiting the CRA's website to do a little research into how best the government recommends recording or accounting for workspace-in-the-home expenses.