jazzys

Apparently i can now claim some internet costs in my tax claim, does that mean i can include telephone connection costs too?

Can't have the internet without the connection can i

Jazzys

The Bloke

Assuming that you run a small business from home http://www.ato.gov.au/businesses/con...tm&page=54&H54

ABCDiamond

Assuming you are claiming the internet under the Education tax bit, then I would say no, you can't claim for the phone line.

And you can actually have internet without a phone these days. Naked ADSL or wireless.


However..... reading the ATO info carefully...

Things you can claim for:

and the phone line is not shown under the small list of things not claimable.

But I 'think' the intention was not to include the phone...

IvanM

I used to claim a portion for work related expenses as I used it to VPN in when on support. Now work pays for it so I cannot claim it.

jazzys

But surely the cost of establishing it and maintining it must include setting up my connection.

I can't get naked ADSL, so i have to have a phone line

Jazzys

ABCDiamond

Trying to look from the ATO side, if you had the phone line operating before you got the Computer, they could ask: so what's different now ?

Playing the Devils Advocate here, but willing to claim it myself if we can find a sure fire way

I have actually wondered about being able to claim all the internet costs, if the internet was in use prior to the children being able to use it.

It does surprise me that it appear OK to claim 100% of the cost, even though it is being used for other purposes as well as education related.

jazzys

I didn't have the phone line operating before i got the computer.
I moved into a rented house last november, that had no active phone line.

I had to get it all connected / activated etc. And now i have to pay line rental in order to access the internet (for my sons school work )

I can't get naked asdl, but i could i suppose get wireless. But i went with the most reliable option so that my son wouldn't have any excuses for not getting his homework in on time, honestly your honour

Jazzys

carlap

I was thinking about this as well. It was the easiest option at the time to get a telstra line. Some of the naked isps required a line connected first (physically you need it anyway), then you go naked and you stop paying the line provider (the isp is still charged by telstra or whoever, and you/isp pay a fee to telstra of about $15 which is part your monthly isp bill)

Anyway, we have a phone line and of all the bills over the year we have abot $10 of calls, so I could argue it has virtually never been used for any other purpose.

Also is it right you submit a total claim (for the education rebate) and keep the receipts in case you are investigating, ie no proof required up front. As in most cases you can claim what you want, its only if they come checking you might get a problem. I am not trying to fiddle here, just interpreting it in a certain way, which might be correct and I have proof and a good argument to back it up

jazzys

All my calls are Voip calls so it could be argued that i don't use the phone line for anything but the internet.

Therefore it must be an internet cost

Jazzys

ABCDiamond

Ah, but you need the internet for VOIP... and you need the phone line for the internet, so you need the phone line for your VOIP calls

ABCDiamond

That is how I read it aswell. But with a $5,000 tax rebate claim this year, I am wondering If they may just target me for checking....

Even though I am sqeaky clean, I do not like being investigated...

jazzys

Isn't that what i just said?

My argument is i got the phone line for the internet, therefore the cost of getting the phone line connected etc should be included into what i can claim for

Jazzys

ABCDiamond

I don't know, I feel a bit confused this morning...

I don't think I will touch my own tax return just yet... coffee time...

ozhappy981

Very quick answer on how this work :

If you use the telephone to connect to the internet, then you can claim the internet related phone cost (call costs and any monthly fees - not the set-up costs).

If you use the internet partly for your own enjoyment, partly for work, and the kids use it partly for school - then you need to apportion the costs.

Let's say you use the internet 60% for fun, 20% for work and have two kids who use it 10% each for school. Then you can claim 20% of the cost at D5 (work-related deductions), and for each of the kids you can claim 10% under the Education Tax Refund.

Sorry, got to rush. I am sure ABCD can do some worked examples with $$$

ABCDiamond

I am pretty sure that the majority of people will just claim the whole lot.

It will be interesting to see if the ATO issue fresh instructions for the claim next year, with more clarity on apportioning this.

The current examples 'appear to indicate' that it can ALL be claimed.