Topics on work-related expense claims (8)

• Understanding Home Office Occupancy Expenses

  In a recent case, Mr. Reid tried to claim occupancy expenses for his home office on his tax return. However, the Tribunal ruled that he either wasn't entitled to or didn't properly substantiate his claims.

  What Are Home Office Occupancy Expenses?

  These expenses include things like rent, mortgage interest, property insurance, and taxes, which are proportionately allocated based on the space and time used for work.

  First Employment Period (with Amcom)

  Even though Mr. Reid often worked from his home office, the Tribunal decided he couldn't claim a portion of his rent as occupancy expenses because his employer provided him with an office to work in.

  Second Employment Period (with Nextgen)

  During this time, Mr. Reid could technically claim some occupancy expenses because he wasn't provided with an office by his employer. However, he failed to provide evidence like a four-week diary or rent receipts, so his claim was denied.

  Tax Tip: Substantiating Home Office Occupancy Costs

  To support your claim for home office deductions, keep records like:

  1. A four-week diary showing how much you use your home office for work.
  2. Receipts or other proof of expenses.

Should you have any questions or need assistance, feel free to reach out to                            Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment through our live calendar.

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• Topics on work-related expense claims (2)
• Topics on work-related expense claims (3)
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• Topics on work-related expense claims (9)