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  • #989086
    Welfare
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    Hi All,
    I have a tax related question regarding what type of property I could lease to use essentially as a place of business, and be able to claim the rent as a tax deduction.
    We (my family and I) will be moving to Phillip Island but I will need a base in Melbourne (city). I’m a broadcast designer who works with computers, so it is not a prerequisite from a practical point of view that my (small) business is run from what is considered a commercial property. Also it would be handy to have a place to crash when I need to be in the city regularly – saving money on hotels. I would need the place in the city to be closer to clients, as a place to meet clients, and to work with others as I need to as well as a place to work when I’m not working from home.
    I am not sure however if I was to rent a non commercial property, which would suit my purposes better, how this would be viewed by the ATO when claiming it as a business expense although it quite obviously is. I can’t find much in the way of helpfull advice for this particular circumstance and my accountant believes the percentage I could claim is pretty low, making renting cost prohibitive, while I have heard other opinions that say I should be able to claim any property used entirely for business. It seems to be right in the grey area, does anybody have a similar situation or any tax advice? I’d really just like to know what the rules are before I make any decisions as even accountants opinions vary on this one.
    Kind Regards, and thanks in advance for any advice given.
    Andy.

    #1170312
    bb1
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    Welfare, post: 197631 wrote:
    Hi All,
    Also it would be handy to have a place to crash when I need to be in the city regularly – saving money on hotels.

    I should be able to claim any property used entirely for business. It seems to be right in the grey area, does anybody have a similar situation or any tax advice? I’d really just like to know what the rules are before I make any decisions as even accountants opinions vary on this one.
    Kind Regards, and thanks in advance for any advice given.
    Andy.

    I already see a problem in your arguement in one line you say “used entirely for business”, but in another you state “you will crash to save on Hotels”, Thats not entirely business use,

    #1170313
    Welfare
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    Thanks bb1,
    Hotels would also be a work expense and therefore claimable to a degree I assume. I think having the option to stay in town if I need to – for work – is more efficient than having to pay for a hotel.

    #1170314
    TehCamel
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    bb1, post: 197638 wrote:
    I already see a problem in your arguement in one line you say “used entirely for business”, but in another you state “you will crash to save on Hotels”, Thats not entirely business use,

    but what if he’s crashing at the city office, to save on the cost of accomodation while travelling to see clients?

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