Office rent, coworking memberships, and chair rental fees are fully deductible on Line 8910. Home office rent belongs on a different line — here's the difference.
Know exactly what belongs on Line 8910 — and what the CRA says doesn't qualify.
Special CRA rules and percentage limits that apply to rent.
If you work from home, the rent portion attributable to your workspace is NOT claimed on Line 8910. It goes to Part 7 (Line 9945) of the T2125, calculated as a percentage of your total rent based on workspace area.
If you rent property from a related person (spouse, family member, corporation you control), the amount must be reasonable — meaning it reflects fair market value. The CRA can challenge above-market rent to a related party.
Section 67 of the Income Tax ActIf you prepay rent covering a future period, you can only deduct the portion that applies to the current tax year. The remainder must be deducted in the year it applies to.
See how different professionals use Line 8910 deductions in practice.
Rented a chair at an established salon to operate as an independent stylist.
$1,200/mo × 12 = $14,400
$14,400 (100%)
Rented a dedicated photography studio for client shoots and editing work.
$800/mo × 12 = $9,600
$9,600 (100%)
Maintained a monthly hot desk membership at a coworking space for client meetings and focused work.
$300/mo × 12 = $3,600
$3,600 (100%)
These errors on Line 8910 can trigger a CRA review — here's how to get it right.
Claiming home office rent on Line 8910 instead of Part 7 (Line 9945)
Home workspace rent must be claimed in Part 7 (Line 9945) of the T2125. Only rent for a dedicated commercial space belongs on Line 8910.
Not claiming coworking space fees as rent
Coworking space memberships and day passes are legitimate rent expenses. They are fully deductible on Line 8910.
Paying above-market rent to a related person
If you rent from a spouse, family member, or controlled corporation, the rent must be at fair market value. The CRA may disallow the excess if the amount is unreasonable.
These categories are often mixed up with Rent. Here's the difference.
Commercial space rent goes on Line 8910. Home workspace rent goes to Part 7 (Line 9945), calculated as a percentage of your total rent based on workspace area.
Rent payments go on Line 8910. If you own the property, property taxes go on Line 9180 instead. These are separate categories.
See how ScanForTax processes a typical rent expense.
WeWork Canada
2025-03-01
British Columbia
ScanForTax categorizes your coworking membership under Rent (Line 8910). The $17.50 GST is recoverable via ITC. The $24.50 BC PST is not recoverable — it's a sunk cost.
Profession-specific guides that frequently use Rent deductions.
See how tax recovery works for rent expenses in each province.
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