{"id":1374,"date":"2022-10-05T05:18:21","date_gmt":"2022-10-05T05:18:21","guid":{"rendered":"https:\/\/actinvest.com.au\/?p=1374"},"modified":"2022-10-05T05:18:21","modified_gmt":"2022-10-05T05:18:21","slug":"claiming-a-tax-deduction-for-expenses-for-a-home-based-business","status":"publish","type":"post","link":"https:\/\/actinvest.com.au\/index.php\/claiming-a-tax-deduction-for-expenses-for-a-home-based-business\/","title":{"rendered":"Claiming a tax deduction for expenses for a home-based business"},"content":{"rendered":"<p><span>If you operate some or all of your business from your home, you may be able to claim tax deductions.<\/span><\/p>\n<p><img loading=\"lazy\" alt=\"\" height=\"317\" src=\"https:\/\/acctweb.com.au\/images\/NP-WFH-oct22.jpg\" width=\"475\" \/><\/p>\n<p>\u00a0<\/p>\n<p>If you operate some or all of your business from your home, you may be able to claim tax deductions for home-based business expenses in the following categories:<\/p>\n<ul>\n<li>occupancy expenses (such as mortgage interest or rent, council rates, land taxes, house insurance premiums)<\/li>\n<li>running expenses (such as electricity, phone, decline in value of plant and equipment, furniture and furnishing repairs, cleaning)<\/li>\n<li>the expenses of motor vehicle trips between your home and other locations, if the travel is for business purposes.<\/li>\n<\/ul>\n<p>There are recent changes to claiming your tax deductions:<\/p>\n<ul>\n<li>temporary\u00a0shortcut method\u00a0\u2013 from 1\u00a0March 2020 to 30\u00a0June 2022, you may have the option of an all-inclusive 80 cents per work hour temporary shortcut method<\/li>\n<li>tax depreciation incentives \u2013 you may be eligible for an immediate deduction or an accelerated rate of depreciation under one of the tax depreciation incentives (such as temporary full expensing).<\/li>\n<\/ul>\n<p>When you sell your home, you may have to pay capital gains tax (CGT). It&#039;s important to keep the right records to work out your deductions or CGT.<\/p>\n<p>If you\u2019re entitled to goods and services tax (GST) input tax credits, you must claim your deduction in your income tax return at the GST exclusive amount.<\/p>\n<h2><strong>What a home-based business is<\/strong><\/h2>\n<p>A home-based business is one where your home is also your principal place of business. That is, you run your business at or from home, and have a room or space set aside exclusively for business activities.<\/p>\n<p>A home-based business can be run:<\/p>\n<ul>\n<li>at home\u00a0\u2013 that is, you do most of the work at your home. An example is a dressmaker who does all their work at home, with clients coming to their home for fittings.<\/li>\n<li>from home\u00a0\u2013 that is, your business doesn&#039;t own or rent a separate premise. An example is a tiler who does all their work on clients&#039; premises, but does all their record keeping, and stores all their tools and supplies, at home.<\/li>\n<\/ul>\n<p>If your home is not your principal (or main) place of business but you do some\u00a0work from home, you may still be able to claim a deduction for some of your expenses relating to the area you use.<\/p>\n<table border=\"1\" cellpadding=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td>\n<p>Industry<\/p>\n<\/td>\n<td>\n<p>Occupation<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Accommodation, cafes<\/p>\n<p>and restaurants<\/p>\n<\/td>\n<td>\n<p>Bed and breakfast operator, caterer, campground owner<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Agriculture, forestry and<\/p>\n<p>fishing<\/p>\n<\/td>\n<td>\n<p>Shearer, market gardener<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Communication services<\/p>\n<\/td>\n<td>\n<p>Mail service provider, web designer, desktop publisher, graphic designer<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Construction<\/p>\n<\/td>\n<td>\n<p>Bricklayer, plumber, carpenter, tiler, fencer, electrician,<\/p>\n<p>builder, engineer, draftsperson, cabinetmaker, woodworker<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Cultural and recreational<\/p>\n<p>services<\/p>\n<\/td>\n<td>\n<p>Film editor, sound recordist, artist, musician, piano tuner<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Education<\/p>\n<\/td>\n<td>\n<p>Tutor, lecturer, music teacher<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Finance and insurance<\/p>\n<\/td>\n<td>\n<p>Financial adviser, consultant, accountant, bookkeeper, insurance broker<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Health and community<\/p>\n<p>services<\/p>\n<\/td>\n<td>\n<p>Dietician, chiropractor, counsellor, physiotherapist, psychologist, massage therapist<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Personal and other services<\/p>\n<\/td>\n<td>\n<p>Personal trainer, photographer, hairdresser, beautician,<\/p>\n<p>child-minder, dressmaker, event manager, cake decorator, jeweller, pet groomer<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Property and business<\/p>\n<p>services<\/p>\n<\/td>\n<td>\n<p>Plant hire or leasing operator, architect, surveyor, interior decorator,house painter,<\/p>\n<p>cleaner, gardener, service and repair operator, sign-writer, tree lopper<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Transport and storage<\/p>\n<\/td>\n<td>\n<p>Courier, freight carrier, removalist<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Wholesale and retail trade<\/p>\n<\/td>\n<td>\n<p>Fresh fruit wholesaler, confectionery supplier,<\/p>\n<p>florist, watchmaker, party-plan operator, telemarketer<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span>If you operate some or all of your business from your home, you may be able to claim tax deductions.<\/span><\/p>\n","protected":false},"author":1,"featured_media":1375,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/1374"}],"collection":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/comments?post=1374"}],"version-history":[{"count":1,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/1374\/revisions"}],"predecessor-version":[{"id":1376,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/posts\/1374\/revisions\/1376"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/media\/1375"}],"wp:attachment":[{"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/media?parent=1374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/categories?post=1374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/actinvest.com.au\/index.php\/wp-json\/wp\/v2\/tags?post=1374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}