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Edited version of private advice
Authorisation Number: 1051842512666
Date of advice: 1 June 2021
Ruling
Subject: Home office expenses
Question 1
Are you entitled to a deduction for a portion of your home office occupancy expenses under section 8-1 of the Income Tax Assessment Act 1997?
Answer
Yes
You are entitled to claim a deduction for a portion of your occupancy expenses relating to your income producing activities under section 8-1 of the ITAA 1997.
Question 2
Are you entitled to a deduction for a portion of your home office running expenses under section 8-1 of the Income Tax Assessment Act 1997?
Answer
Yes
Under section 8-1 of the ITAA 1997 a deduction is allowed 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.
This ruling applies for the following periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are the sole Director and an employee of a company which has been operating since 20XX.
The company provides legal advice to both Corporate and Individual clients specialising in clients from overseas.
You operate your business exclusively from your X bedroom residence.
X of the bedrooms are used exclusively for conducting business activities including face to face meetings an on-line conferences. The bedrooms are used solely for business and are furnished as such.
The lease of the apartment is in your personal name and you wish to claim a deduction for a portion of the occupancy and running costs in your Individual income tax return(s).
The company did not reimburse you for the use of your apartment
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1