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Edited version of your private ruling
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Ruling
Subject: Work related expenses
Question
Are you entitled to a deduction for the cost of hiring a shed?
Answer
Yes.
This ruling applies for the following period
Year ended 30 June 2012
The scheme commenced on
1 July 2011
Relevant facts
You are required to use your own tools for your job.
You have your tools in a trailer.
You do not have secure storage at your home to store the equipment.
You have hired a shed in which you lock up your equipment and store other work related equipment.
You do not store any private items in the shed.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Reasons for decision
Section 8-1 of the Income Tax Assessment Act 1997 allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature.
Expenses are considered to have been incurred in gaining or producing assessable income where they are related to the production of assessable income.
In your case, the cost of storing work related equipment is considered to be directly related to producing your assessable income. Therefore, you are entitled to a deduction for the cost of hiring a shed.
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