Claiming Home Office Expenses for DIY PM

Hey all,

I have mentioned before that I DIY my own taxes and property management. I am very comfortable with managing tenant affairs and I am confident in my basic knowledge of income and expenses for tax purposes. I have previously mentioned that I am expecting a large tax debt for 15/16 FY (three jobs and two positively geared houses). I keep receipts and records for everything! I am having a good look around the ATO website to see if there is anything I can claim with regards to home office expenses. I assumed that I could claim (since there are expenses I incurred in managing income) but having a look now it only seems to refer to home office expenses in the context of working from home. Below is where I was looking.. I couldn't see anything on the investment property section of the website. I am aware you can claim management fees ect.

E.g. printer, paper, ink, labels, envelopes and stamps which were purchased to communicate with tenants. Previously I used supplies from my parents (embarrassing I know).

Any thoughts would be greatly appreciated, as would any ATO links on topic. Worst case scenario I cannot claim it. Just hoping I might be able to bring my tax debt down a tiny bit!

The 30th of October came around fast!


I went to the ATO Website:

• Home

• Individuals

• Income and deductions

• Deductions you can claim

• Home office expenses

 

Claim the pen you use for signing leases. You don't want to get in trouble for mixing deductible and non-deductible expenses. I use a blue pen for deductible work and a black one for doing the crossword to avoid problems.

 

I am completing my tax now just with the contents that I am happy with... There is a heading under each IP for "Total stationery, phone and postage"

 

Are you in the business of property?
What is it you wanted to claim?
What about the CGT effects?

 

Hey Terry,
Thanks for the reply. Not operating as a business. Just the two IP's. E.g. printer, paper, ink, labels, envelopes and stamps which were purchased to communicate with tenants. I specially had to go buy it all as I never had the need for a printer ect previously as all uni work and the like is electronic these days.

 

I don't think you could claim an office - as in part of your interest, but you should be able to claim those costs to the extent they relate to your property investing.

 

Thank you. I am aware it isn't a home office. It was just the closest thing I could find regarding those types of expenses. The My.Tax property section does ask for "Total stationery, phone and postage"... So I am assuming this includes pro-rata printer cost (mostly IP related) ect.

 

These sorts of costs wont represent major tax claims.

eg Home use for laptop, printer etc. 5 hrs a month x 45cents = $27
25% x printer consumables and printer say $100pa = $25

 

See

TR 93/30

PS LA 2001/6