CLAIMING HOME OFFICE COSTS The information in this newsletter is of a general nature only and is not intended to be relied upon as, or as a substitute for, specific professional advice. If you work from home for your employer, you will be able to claim a portion of your expenses on your tax. To claim home office expenses you will need to have at least one room being used specifically as a home office. The tax office draws a distinction between Running expenses and Occupancy expenses. It is easier to claim running costs and only in limited circumstances a deduction may also be allowable for occupancy expenses such as rent and mortgage interest. Running Expenses relate to the use of facilities within the home. These include electricity charges for heating, cooling, lighting, cleaning, depreciation, and the cost of repairs on items of furniture and furnishings in the office. Occupancy expenses relate to ownership or use of a home which are not affected by the taxpayer’s income earning activities, including rent, mortgage interest, water, municipal and house insurance premiums. Claiming Home Office Expenses – Occupancy Expenses Only in limited circumstances a deduction may also be allowable for occupancy expenses such as Rent (Apartment, house, etc) Interest on your mortgage Council and water rates Home insurance premiums They can be made if your home is used as a “Place of business”, ie:- The area is clearly identifiable as a place of business; The area is not readily suitable or adaptable for use for private or domestic purposes in association with the home generally; The area is used exclusively or almost exclusively for carrying on a business; Or the area is used regularly for visits of clients or customers. RESIDENTS TAX RATES FOR 2013 Income Tax Rates 0 - $18,200 Nil $18,201 - $37,000 19c for each $1 over $18,200 $37,001 - $80,000 $3,572 plus 32.5c for each $1 over $37,000 $80,001 - $180,000 $17,547 plus 37c for each $1 over $80,000 $180,001 and over $54,547 plus 45c for each $1 over $180,000 1|Page The information in this newsletter is of a general nature only and is not intended to be relied upon as, or as a substitute for, specific professional advice.
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