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KPG Taxation, Blacktown explains: Whether I can claim a deduction when I keep a room set aside in my house for a home office.

If a taxpayer carries on all or part of their employment activities from home and has an office set aside to do the work, some portion of the running expenses can be deducted. A diary should be kept for a minimum of 4 weeks stating hours the office was used for work-related purposes. The Commissioner’s rate of 52 cents per hour can then be claimed for the hours the home office is used. Only running expenses (electricity, heating, and depreciation of office equipment) can be claimed for home office unless the home is being used as a place of business.

Where a home is a place of business (and is easily identified as such – for example, a separate entrance, signage, clients/customers coming to set area of your home etc.), deductions can be claimed on occupancy and running expenses including:

  1. mortgage interest
  2. rent
  3. house insurance
  4. council rates
  5. insurance
  6. repairs
  7. cleaning
  8. pest control
  9. maintenance
  10. decorating
  11. telephone
  12. heating
  13. lighting
  14. Depreciation.

For other Tax related queries, reach us: 29/15-17 Kildare Road, Blacktown NSW 2148, Australia

Phone: 03 9706 9313