Private ruling: Home office expenses
Date of advice: 1 June 2021
Published: August 2021
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for a portion of your home office occupancy expenses under section 8-1 of the Income Tax Assessment Act 1997 ? | A1: Yes You are entitled to claim a deduction for a portion of your occupancy expenses relating to your income producing activities under section 8-1 of the ITAA 1997. | Q2: Are you entitled to a deduction for a portion of your home office running expenses under section 8-1 of the Income Tax Assessment Act 1997 ? Answer Yes Under section 8-1 of the ITAA 1997 a deduction is allowed for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature.

Relevant facts and circumstances: You are the sole Director and an employee of a company which has been operating since 20XX. The company provides legal advice to both Corporate and Individual clients specialising in clients from overseas. You operate your business exclusively from your X bedroom residence. X of the bedrooms are used exclusively for conducting business activities including face to face meetings an on-line conferences. The bedrooms are used solely for business and are furnished as such. The lease of the apartment is in your personal name and you wish to claim a deduction for a portion of the occupancy and running costs in your Individual income tax return(s). The company did not reimburse you for the use of your apartment

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1


This ruling applies for the following periods: