What are my claimable home office expenses?
If you work at home using a home office which is separate from your private home, you can claim deductions for the additional expenses you incur by working from home. Below is a list of possible expenses you can claim as a deduction:
Occupancy expenses relate to the ownership/use of the home.
You can only claim occupancy expenses if your home office has the character of a “Place of Business”. To determine if your home office is a place of business the ATO will consider:
Is the area clearly identifiable as a place of business;
Is the area can be readily adaptable for private or domestic use within the home;
Is the area is used exclusively as a place to carry on the business;
Is the area is regularly visited by clients or customers;
Is there is an absence of an alternative place to carry on the business.
If your home office is considered a “place of business”, you can claim a portion of the home’s occupancy expenses. The portion of the relevant expense is calculated by:
Home Office Floor Area divided by Total Home Floor Area; or
Amount of time spent using Home Office divided by Total Time
If you use your home office out of convenience or will not be classified as a “place of business”, then you cannot claim Occupancy Expenses as a deduction.
Running expenses relate to the use of facilities within the home. Only the work-related portion of running expenses can be claimed as a deduction
Heating/Cooling & Lighting:
If you sit with family while conducting work, the ATO classifies the heating/cooling & lighting expense as private in nature and not deductible. If you use a separate, dedicated room for work activities, then the additional heating/cooling & lighting expense incurred can be deductible.
Calculate the deductible amount by:
1. Keeping records showing the amount of the expense, and the work-related portion of the expense; or
2. Home office rate (45 cents per hour).
Home office equipment (computer, etc) depreciation can be claimed as a deduction. Home office furnishings can also be claimed as a deduction. Calculate the deductible amount by using:
1. Cost Write Off (for items costing up to $300); or
2. Decline in Value (for items costing more than $300); or
3. Home Office rate (45 cents per hour).
Work-Related Phone Calls:
Can be deductible if you can show you: are on call; or must phone your employer or clients regularly while you are away from your workplace.
Repairs to Home Office
This information is not to be relied upon without speaking to your accountant, tax agent or financial adviser depending on the advice.
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