Do you have a home-based business?

If you run your business from home and have a dedicated area set aside as a “place of business,” you may be eligible to claim occupancy and running expenses. Here are some key points to consider:

Claiming Expenses for a Home-Based Business

Dedicated Business Area:

• If you have a specific area in your home designated as a place of business, you can claim occupancy expenses such as rent or mortgage interest, council rates, land taxes, and house insurance premiums.
• Additionally, you can claim running expenses including electricity, phone and internet costs, and depreciation of office furniture and equipment.

Partial Home Use:

• If you don’t have a dedicated business area but still perform some work from home, you may be able to claim a deduction for the expenses related to the area you use.
• These deductions might include a portion of utility costs, internet, phone, and depreciation of work-related equipment.

Key Considerations

• Ensure you keep detailed records of your expenses and the portion of your home used for business purposes.
• The proportion of your home expenses that can be claimed as a deduction should accurately reflect the amount of time and space used for business activities.

For more information on claiming home-based business expenses, visit the ATO’s home-based business page.

Contact our office at (03) 9848 5933 or book a free introductory meeting to discuss how we can help.

Source: www.business.vic.gov.au