So why can’t I claim my spa and sun lounge as in summer I work from home in the spa with my laptop?
The ATO over the years have seen some outrageous claims based on peoples idea of how they work and how they justify their home office claim
Many are encouraged to work from home with the advent of technology and the ease of doing work and this has led to a large increase in claims for home office including things such as Foxtel, coffee machines, desks couches and even cleaning.
The ATO have come out and set some strict guidelines about what is acceptable and what basis you can claim.
First off are you working infrequently from home or is your home your place of business ?
There are different methods depending upon your circumstances.
If you are working from home and have an office at your employer or work then you can only claim on an hourly basis , based on diary records.
If you are occupying your home as a workplace or place of business then you may be able to claim a percentage of the costs . There is implications for capital gains tax so be careful. The ATO have issued a ruling a percentage calculation of the area at home you can claim. Areas like kitchen and toilet are excluded as they are considered part of your personal needs.
We are often asked can we claim our dog for security . Yes in very limited cases you can but again there must be good reasons and evidence that the dog is needed to secure your business home property! In an ATO Audit the Tax Officer may ring your employer to check if your claim is actually factual, so make sure you have your claim documented .
Check with us about what you can or cant claim to get it right!