by local Mum Nicole Canale of Canale Tax and Accounting
Working from home at all sorts of hours seems to be the new norm and it might have you wondering… is this tax-deductible?
THE GOOD NEWS: If you are working from home during this pandemic or are required to in general, you may be able to claim home office expenses in your personal Income Tax Returns or in your business return.
Deductions you may be able to claim can include:
- Cost of electricity and gas
- Phone and Internet costs
- A decline in value for office equipment, chairs computers etc
- Rent, mortgage interest, insurance rates (please seek advice before claiming these types of expenses)
- Cleaning expenses to your home office (separate to your living space and apportioned)
- Repairs to home office furniture and equipment used for work
For claiming these expenses, there are 3 simple things you need to keep:
- Telephone Log
When it comes to keeping these, remember the following: MORE MORE MORE! THE MORE EVIDENCE YOU KEEP THE BETTER YOUR CLAIM!
How do I keep track and what information do I need to keep?:
- Write down each day how many hours you have worked for your employer or business at home
- Record your small expenses of $10 or less
- There are two ways you can calculate your telephone use:
- Claim up to $50 with limited documents
- Calculate your actual expense incurred – this will most likely provide you the best benefit
- Write down how many work calls you are making per day in your diary so that you can work out the portion you may be entitled to claim
- Keep receipts for EVERYTHING such as:
- Purchasing of desk, chairs, computer accessories
- Purchase of laptops, monitors or other plant and equipment that you have had to purchase to work from home (decline in value may need to be determined in order to claim this)
At Canale Tax and Accounting, our advice as always is to keep as much proof and receipts as possible in order to maximise your deduction. This ATO website link explains some of the home office expenses you can claim
Are you an employer that hires staff or a Sole Trader? Don’t forget to register for the JOB KEEPER stimulus on the ATO website here: https://www.ato.gov.au/general/gen/JobKeeper-payment/
Of course everyone’s circumstances vary and this should be used as general information rather than advice for your income tax returns. Always consult with your Accountant and if you are seeking one, please feel free to get in touch with our office www.canale.com.au. You can email us on email@example.com or phone our office on 1300 001 971
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