The ATO has just released statistics on work related expense claims during last year. Approximately 7.3 million taxpayers claimed work related expenses, and on average $2,008 was claimed for items such as car, travel, uniform and self education. The ATO…
Under what circumstances a tax deduction can be claimed for cost of managing tax affairs
Self-education expenses are expenses that you incur when you undertake a work-related course to obtain a formal qualification from a school, college, university or other place of education.
Today we are looking at claiming tax deductions when you work at home but do not have a home work area. This means that your principal place of business is not at home, nor do you have an area or room primarily or exclusively set aside, but you conduct some business activities at home.
Today we are examining using your Home Office as a Home work area. This means that your principal place of business is not at home but you have an area, such as a study or a spare room, set aside primarily or exclusively for business activities.
Whether you are self-employed or are an employee, you may be able to claim certain work related expense as deduction where the part of your home is used for income producing purpose and has the character of a place of business.
What we can learn from this:
Beware of tax-driven schemes – they are usually unviable investments.
If a return sounds too good to be true, then it probably is.
Do your homework.
If you don’t understand it, you shouldn’t be in it