Quote Originally Posted by playfelt View Post
Groceries is a specific item that is included in the supplies section on the first page of the T2125. It does not go into the business use of home percentages at all. Supplies are everything from pens and paper, toilet paper, wipes, soap, glue, batteries, food, party supplies, etc. Business use of home percentage is for household bills like utilities, mortgage interest, property tax, etc. Not understanding why people seem to be using the same percentage for food as they are for heat and water. That makes no sense at all.
I can understand why accountants are using house usage % for grocery cost. When I started doing my dc taxes with turbo tax they were offering accountants services for a fee which I hired. They were telling me to do this (to use a % of house usage for grocery expenses), but that did not seem accurate to me at all and at the end I used the formula of % of food consumed by dck instead. I believe that advisers/accountants that aren't knowledgeable of this industry don't know how to create a formula (or were to get one since it is only specific for this kind of business) to calculate it, so they go the easy way. I don't know how they can explain that during an audit. Maybe if the auditor does not know too much about this industry they would not even notice the mistake and at the end it would not matter. Maybe a very detailed and smart auditor could notice it, even if they do not have the experience in hdc.