Claiming for a home office on your tax return

If you are an employee who does part of their work from home, or if you are running a business from home, then you may be able to claim a tax deduction for the costs of your home office.

Home offices expenses you can claim as a tax deduction

You can claim a tax deduction for your laptop, desktop, phone and internet costs. Add to this office furniture, printers, air conditioning, lighting and even cleaning. Your accountant can work with you to uncover other costs specific to your situation.

You may also be able to claim a deduction on rent, insurance, interest on your mortgage and rates. Again, check with your accountant to determine the right structure for you.

How to calculate your deductions

There are a number of ways to calculate your deductions. The first is a diary method where you need to record how much time you spend using your home office for business compared to other uses it has. For example, if you are using to dining room table as an office that space may also be used for other activities such as family dinners and entertaining.

The second method is a tax office rate per hour method. Generally, it is a fixed rate of 45 cents per hour for home office expenses and depreciation of office expenses.

If you would like to know more about tax deductions please contact me at rose@roseguerin.com.au

 

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