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HOME OFFICE WORK EXPENSES

TAX DEDUCTIONS

30 JUNE 2022

HOME OFFICE

Method 1

You may claim home office electricity based on floor area e.g. 5%. x $400 (electricity bill per quarter) x 4 = $80. This area must be for the sole purpose of home office. It cannot be for multi-use e.g. dining room table.

Furniture, desks, fax machines, filing cabinets, book shelves, pictures, carpets, blinds, etc. may be depreciated at usually 20%.

Depreciable Items < $300 may be 100% depreciated.

E.g. desk $250 x 100%, chair $120 x 100%, carpet $1,000 x 20%, blinds $600 x 20% = $690

Method 2

You may use the ATO 52c per hour rate to claim electricity, gas and depreciation of furniture and have a separate area set aside. You must keep a 4 week diary or 80c per hour COVID rate.

E.g. 52c x 20 hours per week x 52 weeks = $540.80

 

WORK EXPENSES

iPhone, mobiles & home phone

Computers - iPad, Macs, laptops & desktops

Computer supplies

Stationery - Cartridges, diaries, pens & office sundry

Internet

Self education, conferences and courses.

 

PRIVATE USE APPORTIONMENT

If there is private use (other than incidental use) a 28 day diary is required each financial year or where the work % changes by more than 10%.

A diary can be a simple A4 pad with a line in the middle with work & private on opposite sides.

 

RECORDS

You may claim $200 worth of items costing < $10 without receipts.

 

 

PLACE OF BUSINESS AT HOME

You may claim a percentage of rent, interest, home depreciation, rates, water, insurance, repairs, cleaning, pest control, gardening, etc. based on floor area.

This would apply to the following:

A small business operator whose main office is in their home.

A trades person who has their workshop at home.

A doctor or dentist who has their surgery or consulting room at home.

 

CAPITAL GAINS TAX IMPLICATIONS

You will lose a proportion (based on floor area and time operating at home) of your capital gains tax main residence exemption due to your income producing activity.

 

DISCLAIMER

The information provided in the above documents is not intended to be, nor should it be construed as tax advice. Any specific recommendation for a client can only be done after their individual circumstances have been determined by David Douglas Accountants.

We have clients from the following locations:

Brisbane, Gold Coast, Sydney, Newcastle, Cairns, Canberra, Melbourne, Adelaide, Perth, Darwin.

Other:

Brisbane, Albion, New Farm, Teneriffe, Newstead, Windsor, Wilston, Bowen Hills, Wooloowin, Herston, Lutwyche, Hamilton, Eagle Farm, Gordon Park, Fortitude Valley, Clayfield, Ascot, Hendra.

Morayfield, Burpengary, Caboolture, Bellmere, Wamuran, Narangba, North Lakes, Mango Hill, Kallangur, Dakabin, Deception Bay, Bribie Island, Elimbah, Kippa-Ring.

We do tax returns for individuals, trusts, companies, partnerships, contractors, ABNs and sole traders.

Liability limited by a scheme approved under Professional Standards legislation