They become less blurry if you have a dedicated office space. When you do, you can claim Occupancy expenses such as mortgage interest or rent, council rates, land taxes and house insurance premiums. Running expenses such as gas and electricity, phone, decline in value of plant and equipment, decline in value and cost of repairs to furniture and furnishings, and cleaning. How much can you claim? The percentage of the home floor space your office takes up. For example, if your office takes up of your home’s floor space, you can write off of your house expenses. Work out your deductions with this handy ATO home office expense calculator.
Temporary shortcut for estimating home office expenses Due to COVID, the ATO are accepting a temporary shortcut method for calculating home office expenses of cents per hour for all additional running expenses from March until September . Be extremely careful and seek professional tax advice when USA WhatsApp Number List claiming occupancy expenses for your homebased business, as there will be capital gains tax implications if you sell your home. Clever ways to reduce your small business tax bill Looking for even more ways to lower your tax bill? Introducing the small business tax offset.
The ATO works this out for you and this little gem can reduce your payable tax by up to , each year! You’re eligible for a small business tax offset if you’re operating as a sole trader or have a share of small that turns over less than million for the tax year. The small business tax offset is worked out on how much tax you should pay and based on your business income. The rate of the offset increased from to of your business income on July and is up to a maximum of ,. The ATO has this small business tax offset calculator to give you the net small business income for the ATO. What have we learned? Working out your small business tax deductions starts with the question Did you incur this expense in the running of your business.
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