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  • #983058
    GSanders12
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    If you use your apartment as your home office where you do all of your work to manage your business from, could you write it off as a company expense if you were renting it?

    #1140354
    Divert To Mobile
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    Hi Garry,

    Just the percentage you actually use for work. Dont get too carried away with the deductions, remember your living in there too.

    Steve

    #1140355
    KellyB
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    As Steve said, you can claim a percentage (generally if you have a seperate room allocated for work you claim the % of floor space used for work compared to the total floor space of the apartment) Same goes for electricity, gas, etc,

    #1140356
    MyGreatIdea
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    …and if you’re going to go down that path, make sure you have any insurance and local council permits that you need to operate a home business.

    Check your tenancy agreement as well to make sure you’re actually allowed to operate a business from the premises.

    Wendy :)

    #1140357
    GSanders12
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    Thanks for the replies. What if 50% of my apartment was written as my office space?

    Also can you do tax write offs on alot of things such as car payments, travel, dinners, etc. ?

    #1140358
    MyGreatIdea
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    By “tax write offs” I assume you mean deductions?

    Start by reading this page on the ATO website.

    Wendy :)

    #1140359
    markn
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    First thing you should do is talk to an accountant about what is fair to deduct and what isn’t.

    That being said, I rented for years and ran my business from there. There wasn’t a problem with council regulations or so on because I wasn’t manufacturing, I had no signage, and I never had clients into my house. When I was there I was claiming the following:

    10% of rent (floor space was 10% of the total)
    100% of internet/phone charges
    50% of power expenses
    10% gas

    Once you’ve decided with your accountant what you’ll be deducting don’t forget to include the GST in your BAS.

    #1140360
    The Copy Chick
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    You can arrange an ATO agent to visit your office to help you determine what you can/can’t claim, free of charge.

    #1140361
    TheGoldenGoose
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    From what I know there are complications with CGT for claiming partial rates etc. So I just don’t :)

    #1140362
    markn
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    TheGoldenGoose, post: 160406 wrote:
    From what I know there are complications with CGT for claiming partial rates etc. So I just don’t :)

    Yes, that’s correct. If you own your home then if you claim rates or mortgage payments then you liable for CGT on the portion of the home you’re claiming when you dispose of it. My accountant advised against claiming this.

    #1140363
    Divert To Mobile
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    There are no CGT implications when renting the appartment. But even if you own its doesnt necessarily mean entirely abondoning the right to claim business deductions for expenses at that property. For example you can claim on telephone, internet, electricity, water, gas, and consumables. All of these will not affect the CGT exempt status of your prinipal place of residence at sale.

    Steve

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