6 worked Home Office Expense Claim case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to home office expense claim work, not a specific client's file.
Case Study 1 · Backlog brought current
Collections Halted And $92,000 Cut From A 5-Year Backlog — First-Year Physician, Vancouver
Client: A physician in their first year of practice · Where: Vancouver, British Columbia · Engagement: 6 weeks, fixed fee
Balance reduced by$92,000
Backlog cleared5 years
CollectionsHalted
The situation — A physician in their first year of practice, Vancouver, British Columbia
By the time a physician in their first year of practice in Vancouver, British Columbia called, 5 years were outstanding. The CRA had assessed on estimates. Underneath it sat three years of returns filed without the slips that had been mailed to an old address.
What we did for A physician in their first year of practice, Vancouver, British Columbia
We reconstructed the records year by year. We pulled the full slip history from the CRA record, refiled the affected years by adjustment request, and recovered the credits that had been missed. Each filing replaced an arbitrary assessment with a real one.
The result — A physician in their first year of practice, Vancouver, British Columbia
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $92,000, and a relief application addressed part of the accumulated interest.
Case Study 2 · Deadline rescue
$68,000 Late-Filing Penalty Cancelled On Relief Application — First-Time Home Buyer, London
Client: A first-time home buyer · Where: London, Ontario · Engagement: 9 weeks, fixed fee
Penalty cancelled$68,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A first-time home buyer, London, Ontario
A first-time home buyer in London, Ontario had already missed one deadline and was about to miss a second. Behind it sat employment expenses claimed with no signed T2200 from the employer to support them. A penalty of $68,000 was accruing.
What we did for A first-time home buyer, London, Ontario
We split the work into what had to happen before the deadline and what could follow it. Then we carried the capital loss back against gains reported in the prior three years and generated a refund rather than a carry-forward balance.
The result — A first-time home buyer, London, Ontario
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $68,000 of the penalty already assessed on the earlier year.
Case Study 3 · Planning that cut the bill
$57,000 Saved By Correcting What Prior Filings Had Missed — Commissioned Salesperson, Barrie
The situation — A commissioned salesperson, Barrie, Ontario
A commissioned salesperson in Barrie, Ontario asked for a second opinion on home office expense claim. That followed three years of rising tax. The review found years of small donation receipts claimed one at a time instead of pooled onto a single return.
What we did for A commissioned salesperson, Barrie, Ontario
We built the comparison first: current structure against two alternatives. Then we reported the disposition and filed the principal residence designation for the year of sale, closing the late-designation exposure before the CRA raised it.
The result — A commissioned salesperson, Barrie, Ontario
First-year saving of $57,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 4 · Missed incentive claimed
$32,000 Credit Claim Filed And Accepted Without Adjustment — Mid-Year Interprovincial Mover, Ottawa
Client: An employee who moved provinces mid-year · Where: Ottawa, Ontario · Engagement: 7 weeks, fixed fee
Claim value$32,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — An employee who moved provinces mid-year, Ottawa, Ontario
An employee who moved provinces mid-year in Ottawa, Ontario assumed the credits did not apply to a business its size. Medical expenses claimed on a calendar-year basis when a shifted window was worth far more meant they had applied all along.
What we did for An employee who moved provinces mid-year, Ottawa, Ontario
We identified the qualifying activity and built the documentation to support it. Then we obtained the signed T2200 and rebuilt the employment-expense claim on the prescribed form with the supporting records attached to the file.
The result — An employee who moved provinces mid-year, Ottawa, Ontario
$32,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 5 · Structure rebuilt
Holding Structure Added, $27,000 Saved Annually — Student Filer, Regina
Client: A full-time student with tuition credits and part-time earnings · Where: Regina, Saskatchewan · Engagement: 3 weeks, fixed fee
Annual saving$27,000
ReorganisationTax-neutral
StructureMatches operations
The situation — A full-time student with tuition credits and part-time earnings, Regina, Saskatchewan
The structure at a full-time student with tuition credits and part-time earnings in Regina, Saskatchewan needed fixing. The file was carrying foreign accounts that had crossed the T1135 threshold two years earlier. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A full-time student with tuition credits and part-time earnings, Regina, Saskatchewan
We worked with the client's lawyer. Together, we reset the medical expense claim window, transferred credits between spouses, and applied the tuition and disability amounts to the return that used them. We also prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A full-time student with tuition credits and part-time earnings, Regina, Saskatchewan
The structure now matches the business. Annual saving of $27,000, and the reorganisation itself was tax-neutral.
Case Study 6 · Records and systems rebuilt
Month-End Close Cut From 10 Weeks To 7 Days — Gig-Economy Driver, Lethbridge
Client: A gig-economy driver · Where: Lethbridge, Alberta · Engagement: 5 weeks, fixed fee
Close time before10 weeks
Close time after7 days
Year-endReview, not rebuild
The situation — A gig-economy driver, Lethbridge, Alberta
The accounting file at a gig-economy driver in Lethbridge, Alberta had a weak foundation. It was built on RRSP room accumulated over eight years and never used in a high-income year. The year-end had taken 10 weeks each of the last three years.
What we did for A gig-economy driver, Lethbridge, Alberta
We filed the outstanding T1135 disclosures under the voluntary disclosure route before the CRA raised them. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A gig-economy driver, Lethbridge, Alberta
The file reconciles. Month-end closes in 7 days instead of 10 weeks, and the year-end is a review rather than a reconstruction.
Reviewed by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
