Claiming Home Office Costs by IM5lOy

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									               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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