Brow of the Hill Accounting FAQ
Questions from Brow of the Hill Residents
Straightforward answers to what individuals, families, and self-employed residents most commonly ask before their first conversation with Phoenix Knight.
I work from home in Brow of the Hill. Can I deduct my home office?
Yes, subject to conditions. For employees, CRA requires either a T2200 signed by your employer confirming you are required to work from home, or that you meet the criteria under the temporary flat-rate method when applicable. For self-employed individuals, the home office must be used exclusively and regularly for business, and the deductible portion is calculated on a reasonable basis — usually square footage of the work area relative to the total home. Expenses include rent or mortgage interest, property taxes, utilities, and maintenance, allocated by that ratio. Phoenix Knight calculates this correctly and ensures the claim aligns with your specific employment or self-employment situation.
My Brow of the Hill home has a rental suite. What do I do with CRA?
Rental income from a secondary suite is reported on Schedule T776 of the T1 return. You report gross rent received and deduct eligible expenses to arrive at net rental income (or loss). The mortgage interest portion, proportionate property tax and insurance, and direct repair costs to the suite are all deductible. The principal portion of mortgage payments is not. If this is the first year reporting rental income, Phoenix Knight will also review whether a change-in-use election is warranted to protect your principal residence exemption on the full property value — a step that landlords who set up suites without accounting advice frequently miss.
I have several years of unfiled T1 returns. Can you help?
Yes. Unfiled returns are resolved through a structured process: gathering the income information CRA holds on file for each year, matching it against available deductions and receipts, preparing the returns accurately, and submitting them in a sequence that minimises the total balance owing. In many cases, Voluntary Disclosure through CRA's VDP program limits or eliminates late-filing penalties — Phoenix Knight assesses eligibility before any submission is made. The most important step is to start before CRA contacts you, since the VDP window closes once CRA has already opened a review for those years.
I recently arrived in Canada and live in Brow of the Hill. How does my first tax return work?
Your first Canadian T1 covers the period from your date of entry to December 31 of that year. You report world income from your arrival date forward (domestic income only before that date, unless you were a resident prior to arriving). Deductions, credits, and benefit eligibility depend on residency status and days in Canada. Phoenix Knight works with newcomers in New Westminster on their entry-year returns, ensuring residency status is correctly established, eligible provincial and federal credits are claimed, and RRSP and TFSA contribution room is calculated from the correct starting point.
I received a CRA notice of reassessment. What should I do?
Read the notice carefully and note the deadline for a formal objection — typically 90 days from the date of the reassessment. If you disagree with the adjustment, a Notice of Objection must be filed within that window or the reassessment becomes final. Do not simply pay an amount you believe is incorrect without assessing your options first. Phoenix Knight reviews reassessments for Brow of the Hill residents, prepares objection documentation where the position is supportable, and can represent your interests through the CRA dispute process or negotiate a resolution where a balance is legitimately owed. Read about late filing consequences →
