Rent Expenses on Your T2125
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.
What You Can (and Can't) Deduct
Know exactly what belongs on Line 8910 — and what the CRA says doesn't qualify.
What Qualifies
- Rent for business premises (office, studio, workshop, warehouse)
- Equipment rental (tools, machinery, specialized equipment)
- Coworking space memberships and day passes
- Chair or booth rental (hairdressers, beauty professionals)
- Storage unit rental for business inventory or equipment
- Parking spot rental at your business location
- Land rental for business use
Does NOT Qualify
- Home workspace rent (goes to Part 7, Line 9945)
- Rent paid to a related person above a reasonable (market rate) amount
- Personal rent or residential lease payments
- Security deposits (refundable deposits are not expenses)
- Lease payments for a vehicle (those go under Motor Vehicle Expenses)
Rules & Limits
Special CRA rules and percentage limits that apply to rent.
Special Rules
Home Workspace Rent Goes to Part 7
Heads upIf 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.
Related-Person Rent Must Be Reasonable
Heads upIf 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 ActPrepaid Rent
Heads upIf 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.
Real-World Examples
See how different professionals use Line 8910 deductions in practice.
Monthly Chair Rental at Salon
Rented a chair at an established salon to operate as an independent stylist.
$1,200/mo × 12 = $14,400
$14,400 (100%)
Studio Space Rental
Rented a dedicated photography studio for client shoots and editing work.
$800/mo × 12 = $9,600
$9,600 (100%)
Coworking Space Membership
Maintained a monthly hot desk membership at a coworking space for client meetings and focused work.
$300/mo × 12 = $3,600
$3,600 (100%)
Common Mistakes to Avoid
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.
Commonly Confused Categories
These categories are often mixed up with Rent. Here's the difference.
Business-Use-of-Home Expenses
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.
Property Taxes
Rent payments go on Line 8910. If you own the property, property taxes go on Line 9180 instead. These are separate categories.
Sample Receipt Walkthrough
See how ScanForTax processes a typical rent expense.
WeWork Canada
2025-03-01
British Columbia
How ScanForTax categorizes this
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.
Frequently Asked Questions
Can I deduct my coworking space fees?
Where does home office rent go?
Can I rent space from my spouse?
Related Professions
Profession-specific guides that frequently use Rent deductions.
Tax Guides by Province
See how tax recovery works for rent expenses in each province.
Related Expense Categories
Tax deadline is April 30th.
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