Beaconsfield (03) 9707 0555
Cranbourne (03) 5995 2700
Pakenham (03) 5940 4555
Warragul (03) 5622 1793
Which home office expenses can you claim? – July 2014
If you operate your business in full or in part from home and are required to use your own computer, phone or other electronic devices for work purposes, you may be able to claim a deduction for your costs. There are however rules you need to adhere to and records you need to keep.
The deductions you may be able to claim are for:
Being able to claim these expenses hinges on whether your home is your place of business and if you have an area set aside exclusively for business activities.
If your home is indeed your place of business and you have an area set aside exclusively for business activities, you may be able to claim both occupancy and running expenses. If you carry on your business elsewhere however and also do some work at home, you cannot claim occupancy expenses – even if you have a work area set aside in your home.
The table below shows the deductions you can claim for the three options that exist for a taxpayer to “work from home”.
Once you determine the costs that you can deduct, you are required to keep the relevant records. These can be:
Consult this office for more, but also here is a home office expenses calculator from the Tax Office that will help you calculate the amount you can claim as a tax deduction for home office expenses for the 2011-12, 2012-13 and 2013-14 financial years.
One important point to remember is that should you use any portion of your home as a place of business, the main residence exemption to capital gains tax (because it is your principal place of residence) is generally relinquished for that portion. Consult this office for the implications this may have on your tax situation.
DISCLAIMER:All information provided in this publication is of a general nature only and is not personal financial or investment advice. It does not take into account your particular objectives and circumstances. No person should act on the basis of this information without first obtaining and following the advice of a suitably qualified professional advisor. To the fullest extent permitted by law, no person involved in producing, distributing or providing the information in this publication (including Taxpayers Australia Incorporated, each of its directors, councilors, employees and contractors and the editors or authors of the information) will be liable in any way for any loss or damage suffered by any person through the use of or access to this information. The Copyright is owned exclusively by Taxpayers Australia Inc (ABN 96 075 950 284).