All Topics / Legal & Accounting / tax benefits on study in rental apartment

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of a_d_r_i_a_na_d_r_i_a_n
    Participant
    @a_d_r_i_a_n
    Join Date: 2011
    Post Count: 19
    June 18, 2012 - 2:47 am

    Hi

    I am currently looking to rent in the Sydney metro area, and was wondering would a 2 bedroom place be better (1 bed + 1 study / office) have good tax benefits compared to 1 bedroom place (without a study / office).

    I know the question is very broad.
    But for example….
    The unit is 90sqm2 in total and office size would be 6sqm2
    lets say rent $400

    I am aware it is only a % that is claimable.

    If someone else is using this method for tax, I would like to know your thoughts aswell.

    Any information would be great :)

    Thanks in advance
    Adrian

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 18, 2012 - 2:53 am

    Are you suggesting you may be able to claim part of the rent as a deduction? If so will you operate a business from home?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of a_d_r_i_a_na_d_r_i_a_n
    Participant
    @a_d_r_i_a_n
    Join Date: 2011
    Post Count: 19
    June 18, 2012 - 3:41 am

    Terry,

    With the way you have answered that question, I dont like the way the conversation is heading lol

    But for my 9-5 job, I work from home 3-4 times a week and was hoping this would tax deductiable?
    Also running all the paper work and computer usage from investing aswell.

    Please inform me if i am totally wrong

    Regards,
    Adrian

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 18, 2012 - 3:45 am

    Hi Adrian sorry didn't mean to scare you!

    You can generally claim costs associated with running a home office but not rent unless you are self employed. The office needs to be your place of business.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of a_d_r_i_a_na_d_r_i_a_n
    Participant
    @a_d_r_i_a_n
    Join Date: 2011
    Post Count: 19
    June 18, 2012 - 4:35 am

    Hi Terry,

    Thanks for clearing that, but does a 'home office' need to be a seperate room of the house? ie second bedroom
    Or could you get away with having a study of the side of the living room?

    Thanks again
    Regards,
    Adrian

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 18, 2012 - 4:37 am

    Think it has to be a second room

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of a_d_r_i_a_na_d_r_i_a_n
    Participant
    @a_d_r_i_a_n
    Join Date: 2011
    Post Count: 19
    June 18, 2012 - 4:42 am

    Terry, thanks so much for your help

    Cheers,
    Adrian

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