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HOME OFFICE WORK EXPENSES
TAX DEDUCTIONS
30 JUNE 2024
HOME OFFICE
Method 1 - Actual Expenses (unless you have a defined area, don't bother)
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, filing cabinets, book shelves, pictures, carpets, blinds, etc. may be depreciated at usually 20%. You need a separate area.
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%, office laptop $1,000 x 67% = $1,690
Method 2
You may use the ATO 67c per hour rate to claim electricity, gas, internet, Phone (mobile & home), stationery and computer supplies. You may also claim office equipment and furniture depreciation, repairs and cleaning. You do not need a separate area.
You must keep a record of all hours worked from home.
E.g. 67c x 20 hours per week x 52 weeks = $696.80,
Plus office laptop $1,500 x 67% = $1,000.00
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