Ask Allan Forum
Get expert answers to your tax questions straight from Allan, our owner and experienced CPA. It’s free, direct, and designed to help you make the best decisions when it comes to your taxes.
Hi,
Is there a way in which instead of taking a high salary, my own corporation pays for my housing rent and utilities as an employment benefit?
It is to be noted that my house will NOT be used for business purposes and I have a separate office. I just want to know if house rent can be paid for by my corporation as an employee benefit and be written off as a business expense?
Kindly advise
Thanks
Yes, you can have your corporation pay for all or a portion of your housing costs. Since you do not have a home office, the entire amount paid by your corporation to you in respect of housing will be fully taxable to you and included on your T4 slip. In addition, payroll taxes must be deducted from housing payments made to you. Your corporation can write-off the amount paid and included on your T4 slip as a business expense. However, you will not save any taxes with this approach.