If you are normally office bound, chances are you were required to work from home over the past year. The ATO has released its latest reminder about the kinds of expenses you can and can’t claim if you are working from home. Here’s the list!
- Personal expenses like coffee, tea and toilet paper. While they might normally be supplied by your employer, they still aren’t directly related to earning your income.
- Expenses related to your child’s education, such as online learning courses or laptops.
- Large expenses up-front. Any asset that costs over $300 (either in total or per item), such as a computer, can’t be claimed immediately. Instead, these claims should be spread out over a number of years.
- Employees generally can’t claim occupancy expenses such as rent, mortgage interest, property insurance, land taxes and rates.
Working from home does not mean your home is a place of business for tax purposes. If you claim occupancy expenses, you may have to pay capital gains tax when you sell your home, even if it is your main residence.
Be sure to get in touch if your are unsure of what you can and can’t claim in your 2021 tax return.