Claiming Your Home Office Costs – The Spare Bedroom Myth!

I always get asked about the myth of home office deductions and "told" by the bbq experts that they pay for their rent or mortgage from their business and get a bigger tax refund because of those costs. The reality is quite different and being able to put the cost on your tax return or financial statements does not mean the ATO will allow the deduction.

The answer to this question is always guided by your specific circumstances - But, as a general rule, expenses associated with renting or owning your own home (that is, occupancy expenses) are of a private or domestic nature and do not qualify as a tax deduction.

The good news is this is not always the case and even if a home office claim is not allowed you should still be entitled to claim running expenses such as stationery, ink, home internet and all the other costs associated with your home office. If you think you are entitled to an office claim then give us a call and we will work with you to legally maximise your deductions. We may even be able to structure a claim for your home mortgage interest!!

If however, you think your expenses are tax deductible because your mate at the weekend BBQ has told you he claims 19% of his house costs as a tax deduction for his computer in his spare bedroom, then you should read the information provided through the link below on what the tax law actually allows. This is an area the tax office can identify electronically and they will in all likelihood disallow a claim if it is not compliant with the law.

For more information on legally reducing your tax CLICK HERE to make and appointment or give our office a call on 5493 1600 to speak to one of our qualified experts and let us help you reduce your tax without the audit risk.