markinhull

Hello

I have a question for any accountants out there!!! My employer has closed their office and I am now officially based from home. Is there any tax relief I can claim back on this and what is it based on if there is??

My reason for asking is that I am due to move in to a new rental at the beginning of July and if I can claim tax relief on part of the rental value, then I may be able to increase my budget to allow an extra room for an office.

Thanks
Markinhull

Gibbo

Not an accountant but one of my sons works from home and he claims a lot. Your best bet is to visit a tax accountant. Think you will be pleasantly surprised!

NickyC

I worked from home for 11 years and claimed for loads of stuff. Never got into claiming 'rent' costs as it could have capital gain implications later on if we ever sell our house (we own it). I did claim for electricity, office fit-out, all PC-related items, newspapers, cleaning etc plus travel costs to/from clients.

The ATO site has a calculator to help you work out what you can claim - but I do recommend seeing an accountant, at least for your first tax return.

http://calculators.ato.gov.au/script...fice.XR4&go=ok

Gibbo

Nicky, I'm pretty sure my son claims, at least, part of his rent. When you own, you do pay tax on the part you claimed when you sell.

NickyC

Yes, it's much more straightforward to claim part of the property as an office if you're a renter - as in the transaction is over and done with in the same tax year.

I never got into it as I didn't want to let myself into complex capital gain complications maybe years down the track - all because once upon a time I claimed some rent for my home office. It was simpler for me to leave well alone!

Trevglas

Agreed,
I was told by my accountant that if you own your house, making any form of claim for tax deduction against say mortgage interest, or against the "rent" you charge yourself for a home office will leave you open for capital gains tax when you come to sell.

briwi

I went to the tax office with this question the other day as I didn't believe my accountant when he said I couldn't claim any share of my rent as I work solely from home - and the reason we have a two bedroom place is so I can have a separate office.

The tax office's view is as you have to have somewhere to live anyway, generally you are not entitled to claim any share of your rent against tax. However you can apply for a private ruling which may determine differently in individual cases - basically you've got to decide if the rebate is worth the hassle.