If you are one of the many Victorians who are currently working from home in response to the Covid-19 restrictions, make sure you keep track of any expenses you incur during this period as many of them could be claimed on your next tax return.
Obviously, here at Ian Reid Vendor Advocates it is not our role to provide tax advice. However, we would suggest seeking some qualified advice in this area as a look through the ATO website indicated that there are a number of items that you may be able to claim for, depending on your circumstances.
The general rule of thumb is that you can claim deductions on those items that you use to perform your job, such as computers, phones, internet and office furniture. It is worth keeping receipts for other items that you may need to purchase during this period such as your stationery and cleaning materials for the office. Some accountants have also mentioned that you could also claim for wear and tear on household fittings like carpets, curtains and light fittings.
If you have a set area of the home that is set aside as a dedicated home office, you may already be claiming for a proportion of the overall household expenses such as electricity and heating. However, we are told that the Tax Office is offering a specific hourly rate for these types of expenses, even if you do not have a specific area of the house set aside as an office.
Another item you may want to keep track of is your car expenses. With you home now performing as your second place of work, you may also be able to claim for any travel you take between your home and the office.
As we said earlier, tax claims are not our area of expertise. However it is definitely worth getting some professional advice on what you can claim for in these challenging times. What’s more, we would suggest doing that sooner rather than later, so that you don’t overlook keeping any records that might help your claim.
Of course, if you do need any experienced advice that is more related to the current property market, you can call us on 9430 0000.
You’ll also find lots of helpful tips on selling your property in our free booklet, “Fatal Real Estate Traps Exposed”. Feel free to download a copy while you’re here.