January 22, 2021
mobilityView Will Enable All 15 Million Employees Working From Home With A Cellphone Tax Deduction
Toronto, 22nd January 2020 – mobilityView Will Enable All 15 Million Employees Working From Home With A Cellphone Tax Deduction
On December 15th 2020 the Canadian Revenue Agency updated their guidance on Work From Home deductions related to the pandemic.
Any employee that meets the Work From Home requirements can now deduct the business usage of their personal cellphone.
By phrasing it in the way that they have “employment use of a basic cell phone service plan” and “long distance calls for employment purpose” the CRA has confirmed once again what mobilityView has been saying for years :
Employees and Employers effectively need a mileage book for their cellphones.
The mileage book analogy is highly accurate and good representation of what the CRA is asking of Canadians.
The CRA has for 40+ years required every Canadian to have a mileage book tracking the business use of their personal automobile.
The CRA is now saying that the same is needed for the cellphone.
When you are able to document and substantiate the business portion of the cellphone bill you may deduct it.
You will find links to the appropriate forms and written statements here : https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t777s.html
For more information on the changing tax landscape around cellphones see the following posts :
Additional Information For Employee Work From Home Deductions : https://www.linkedin.com/feed/update/urn:li:activity:6745346401477230592/
HST ITC Implications : https://www.linkedin.com/feed/update/urn:li:activity:6745342728357457921/
Taxable Benefits & Need To Document Personal Usage and Cost : https://www.linkedin.com/feed/update/urn:li:activity:6704701660675026944/ Back