Your client is employed and lives in a (purchased) home in Toronto.

They have built an office in their home. Assume the client meets one of the two conditions necessary for deducting home office expenses.

Also assume the client has a contract with the employer indicating they must pay for rent and supplies and the employer has completed form T2200.

Of the total home, the home office represents approximately: 1/7th

They have provided you with a list of the following expenses:

Rental value - for office space: $7,500

Maintenance: $1,500

Taxes: $1,500

Insurance: $775

Required:

Compute the amount eligible for the home office deduction.