Home – New Forums Money matters Can a Company claim Tax Deductions & GST Credits for Director’s home office?

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  • #982625
    harry01
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    Hi everyone,

    I run a company XYZ Pty Ltd, which operates out of a small commercial office. I also spend a few hours (after office hours) each day working on XYZ Pty Ltd from my home office.

    I am wondering if a company XYZ Pty Ltd can claim Tax Deductions and GST Credits on Director’s home office expenses such as Electricity, Gas, Water, Computer & Furniture?

    If so, is this simply calculated as a ‘percentage used for business purposes’ by the Director. And XYZ Pty Ltd reimburses the Director for that percentage?

    Thanks in advance for your help.

    #1137826
    easypeas
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    It is my understanding that you can… but hopefully an accountant on here will give you a more definite answer ;)

    #1137827
    Healthy Personal Finances
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    Check out this from the ATO

    http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Home_office.XR4&go=ok

    http://www.ato.gov.au/individuals/content.aspx?menuid=0&doc=/content/00288728.htm&page=27

    Both of these only go up to years endeing 30 June 2012 but will give you an idea.

    Cheers
    Stacey

    #1137828
    PRO
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    Healthy Personal Finances, post: 157275 wrote:
    Check out this from the ATO

    http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Home_office.XR4&go=ok

    http://www.ato.gov.au/individuals/content.aspx?menuid=0&doc=/content/00288728.htm&page=27

    Both of these only go up to years endeing 30 June 2012 but will give you an idea.

    Cheers
    Stacey

    Speak to an accountant but there did used to be an issue with losing a section of your CGT exemption on your residence if you claimed for home office. Have not looked at that for 15 years though so very rusty.

    D

    #1137829
    harry01
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    Healthy Personal Finances, post: 157275 wrote:
    Check out this from the ATO

    http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Home_office.XR4&go=ok

    http://www.ato.gov.au/individuals/content.aspx?menuid=0&doc=/content/00288728.htm&page=27

    Both of these only go up to years endeing 30 June 2012 but will give you an idea.

    Cheers
    Stacey

    Hi Stacey,

    The links you have provided is for Individual tax deductions? I am looking for a Business tax deduction.

    My confusion is that I am not sure if a Business can claim deductions for home office of a Director in the same way an individual can for their work related home office expenses.

    #1137830
    KellyB
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    A simple option may be for the company to pay you an extra allowance to work from home, and then you can claim the deductions in your personal name against that allowance. So that way the company is getting the benefits of the tax deductions.

    With regards to capital gains, if your claims relate to usage costs (gas, elec, phone, Internet, etc), then it wont have CGT implications, however you shoud steer clear of claiming ownership costs (such as interest on mortgage, council rates, water rates etc).

    #1137831
    KellyB
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    Sorry I forgot to add that the company would not be able to claim the GST credits, as they will not hold tax invoices in the company’s name, as the invoices would all be in your name as a director

    #1137832
    harry01
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    Thank you so much KellyB! That is exactly the answer I was looking for.

    Thanks everyone who had responded too.

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