Purchasing a Home for Business

[KTrain]

This is kind of a question for Realtor 1 and/or J pold:

We're debating purchasing a home and using part of it for our business (graphic and web design/development). We thought part of the home could be rented out as well.

Are there any legal or zoning issues we need to be aware of?

Where's the best place to look for commercial properties for sale?

Any thoughts or concerns we should be made aware of would be great as well.

We're really at the beginning stages of thinking about this. It's a big step for us.

[troutman]

Work-space-in-the-home expenses

http://www.cra-arc.gc.ca/tx/ndvdls/t...sn/hm-eng.html

You can deduct the part of your costs that relates to your work space, such as the cost of electricity, heating, maintenance, property taxes, and home insurance. However, you cannot deduct mortgage interest or capital cost allowance.

[KTrain]

Thanks. We've been working out of my home and we're going to be growing out of the office space. We've thought about leasing an office but I've never liked the idea of paying someone else's mortgage. I know there are advantages to both sides.

The idea of a house came up because if, in a few years, we decide to move the business out of the house, we can still use it as a rental property.

[DoubleF]

I know of several individuals who used a home as an office. There's even certain properties with a large main floor area which is a great office space and nice living space on the upper floors (I've been in one in the Bridgeland area).

IIRC, another CRA thing you may want to check out other than what Troutman already quoted, is that if audited, I think you have to be able to prove that the area used for a home business is used solely for business. I don't think it can be a business 8-5 then family room for the rest of the time.

Sorry, I don't know if posting links is ok... Chose a Remax one just to be safe.
http://www.remaxcentral.ab.ca/cgi-bi...db=redbcalgary

I think this is one of those "types" of units, but I can't quite tell from the pic. Living area looks quite similar to the other one I was in though.

[KTrain]

The idea is that the main floor of the home would be used for our business and the basement could be rented out.

If I were living in the place as well I would definitely be looking at those townhomes in Bridgeland. They were being built when I lived in the neighbourhood and I loved the idea of mixed commercial/residential in one unit.