- pyramidParticipant@pyramidJoin Date: 2005Post Count: 64
Claiming a home office tax deduction on a portion of your home is akin to renting a small part of the home for the office. Does this mean that that portion would be subject to capital gains tax?TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Hence consideration needs to be made before you start trying to claim the property as a Home Office etc.pyramidParticipant@pyramidJoin Date: 2005Post Count: 64
Thought so! There's no escape. They get you one way or another.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
Many people have probably received no advice, or even bodgy advice, and will end up paying thousands more inn CGT in order to save a few hundred in income tax.Ben EllingsenParticipant@ben-ellingsenJoin Date: 2007Post Count: 22
There is a difference between claiming your office as a "home office" and a "place of business". When claiming as "home office" there is no CGT implications but you are limited to claiming running expenses ie. depreciation on furniture and the statutory 26c/hour as prescribed by the ATO for lighting, heating, etc. When claiming as "place of business" occupancy expenses are claimable ie. rates and interest.
The "place of business" is only eligible for people operating a business from their home, not people who work from home but are employed by a third party.Edvico_kvnMember@edvico_kvnJoin Date: 2008Post Count: 46
I'd also be careful of the Land Tax implications.
You may cop a land tax assessment (i.e losing the main residence land tax exemption to some extent) due to claiming occupancy home office costs in the tax return.
The ATO and Office of State Revenue do sometimes corroborate taxpayer's information.
So consider both the CGT and Land Tax implications before claiming home office occupancy costs