Re: Home office computer claim -- Cox Business Accountants

[ Show ]

Support VoyForums

[ Shrink ]

VoyForums Announcement: Programming and providing support for this service has been a labor of love since 1997. We are one of the few services online who values our users' privacy, and have never sold your information. We have even fought hard to defend your privacy in legal cases; however, we've done it with almost no financial support -- paying out of pocket to continue providing the service. Due to the issues imposed on us by advertisers, we also stopped hosting most ads on the forums many years ago. We hope you appreciate our efforts.

Show your support by donating any amount. (Note: We are still technically a for-profit company, so your contribution is not tax-deductible.) PayPal Acct: Feedback:

Donate to VoyForums (PayPal):

[ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time ]

[ Next Thread | Previous Thread | Next Message | Previous Message ]

Date Posted: Wednesday, December 04, 03:42:23pm
Author: Angus Sherlock
Subject: Re: Home office computer claim
In reply to: Cashed Up 's message, "Home office computer claim" on Wednesday, December 04, 10:43:10am

Unless the items you mentioned cost less then $300, then you will not be able to claim the "full purchase price". Assets used in business that cost more then $300 must be depreciated (if the client has not elected to enter the Simplified Tax System (sts)).

There are a couple of ways in which non-sts taxpayers can claim depreciation, either through a low value pool, or using effective life. Both methods have their positives and negatives, and we would need more information to suggest which method to use.

In regards to ongoing running costs, claims for paper, ink and other consumables are fine, as long as the business proportion of those expenses is reflected in the claim.

As for electricity and power for the use of the home office, there are two ways in which running expenses can be claimed. The method in which running expenses can be claimed will depend on whether the home can be regarded as a place of business or whether the taxpayer simply finds it convenient to do part of the work at home. From the situation you have described the second scenario seems appropriate and from this the appropriate claim would be to claim running expenses at 20c/hr.

For example you might do 5 business hours a week @ 20c/hr for 48 weeks in the year, then your claim for running expenses for the year would be $48.

For a clearer answer then it would be advised to consult your accountant.

[ Next Thread | Previous Thread | Next Message | Previous Message ]

Replies:

Re: Accounting package -- Colin, Thursday, December 05, 06:52:16am

Thank you both for your advice -- Cashed Up, Thursday, December 05, 03:07:25pm