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Claiming deductions on home office costs

Apr 29, 2020
Claiming deductions on home office costs

Transcript:

Ross:  00:04 Hi everyone. I’m Ross.

Sanjana: 00:05 Hi, my name is Sanjana and today we’re going to be talking about home office costs, which is an often a question asked by a lot of our clients.

Ross: 00:14 Yep. So first things first, you cannot claim a tax deduction for a percentage of your mortgage repayments if you’ve got a home office.

Sanjana: 00:22 Yep. To claim the tax deduction in the home office, you need to maintain a full week office diary, which helps us apportionate, what costs are your private costs and what is your business related costs. And to claim that, we can use 52 cents per hour as your tax deduction.

Ross: 00:40 Yep. So your four week diary gives you 52 cents an hour. The four week diary can also be used to help us understand the portion of your internet use that is work-related as opposed to your private internet use. If you’ve got a place of business at your home, it’s a different kettle of fish. But if it’s just a desk in a study, your home office costs are limited. Thanks guys.

Sanjana: 01:03 Thank you.



Category: Family Owned BusinessTaxVlog

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