If you run a business from home, what deductions are possible.
Can you list the house as an asset of the company and claim the intrest on the loan?
I am not an accountant so tell me if i am being an idiot.
You can treat the home similar to an IP except only claiming a % of costs according to the % use of the house is for your business.
Think hard before doing it as it also compromises your CGT exemption when it is time to sell.
I suggest you speak to your accountant before making a decision.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Why does it affect CGT?
Because part of your home is now income producing – it means you have to proportionally pay CGT as well.
Do a search on the ATO site and you will see it all in black and white (or whatever colours they use!).
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
It is probably not worth claiming a few thousand dollars now if you are going to lose the CGT free status of your home. Thnk carefully before doing this.
Terryw
Discover Home Loans
Parramatta
[email protected]
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
ditto the above very learned comments – i actually discusse same topic with my accountant this week – even the accountants cant get it…
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbanehi pipelinebuilder
I have my office at home but don’t claim any thing for because of cdt.
if you claim 20% of the rates and electric and gas etc then when you sell its basically 20% of the property then get cgt tax ( and the tax dept add a little to make sure its right) so for the saving for get it.
Also and this is nothing to do with this info but what were you drinking to post tax minimisation as a post topic.
anything with tax minimisation even thou in this case it not, give these little tiggles down my back at the mention.
haven’t seen it posted for some time and maybe if you do talk to any accountant its like the f word the them you can say it, just don’t spray it on their wall.here to help
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