Home based businesses deductions

Written on the 20 May 2014 by Macmillans Waller Fry - Accountants Maitland

Businesses that are run from home can claim deductions on their tax return. These include:

1. Cost of room’s utilities

These claims must be apportioned and if the portion is based on anything other than the floor area the claim must be clearly documented.

2. Phone costs

If a telephone is used exclusively for business, owners can claim for the rental and calls but not the installation costs.

3. Decline in value

This can apply to items such as desks and computers. If the equipment is also used for personal use then the claim must be apportioned.

4. Costs of owning the house

The most common method for claiming costs for the room that is used as a business is using the floor area as a proportion of the whole home. Owners should be aware of potential CGT implications when selling the home.


Author: Macmillans Waller Fry - Accountants Maitland
About: Maitland

 

Long term tax-effective Investments

Determining where to invest requires multiple factors to be taken into consideration. One such factor may be tax efficiency. The tax charged on income from a tax-effective investment is less than the individual’s marginal tax rate. Superannuation The government provides incentives to save t...
Read More...


Salary Sacrificing for your Super

One of the most effective ways to add to your super balance is through salary sacrifice. Salary sacrifice involves the employee agreeing to exchange a portion of their salary (before tax) for an increase in superannuation contribution by their employer. Contributions made through salary sacrifice...
Read More...

associations

 

 

Who we are

 

What we do

 

Macmillans - Accountants

Address:40 Church Street

Maitland NSW 2320

Phone:02 4933 4444

Fax:02 4933 7781

Email

 

Online PaymentContact Us