Private ruling: Deductibility of home office expenses
Date of advice: 11 March 2019
Published: May 2019
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 July 2015

Ruling: Q1: Are you entitled to a deduction for eligible home office expenses while in bankruptcy? | A1: Yes. Taxation Ruling TR 93/30 Income tax: deductions for home office expenses (TR 93/30), discusses home office expenses. Having considered your circumstances, the Commissioner accepts that you’re entitled to a deduction for eligible home office expenses while in bankruptcy, under section 8-1 of the Income Tax Assessment Act 1997 . Further information on the relevant factors on Home Office Expenses generally can be found on our website ato.gov.au and entering Quick Code QC 31977 into the search bar at the top right of the page.

Relevant facts and circumstances: You use a room in your house to complete paperwork, take calls and meet clients. You also use the garage and shed to store your equipment. You own the property. You were declared bankrupt. A Bankruptcy Trustee was appointed in 20XX. The Trustee allowed you to remain in the property. The title deed has remained in your name. You have continued to pay the mortgage to the bank. You have also paid all other occupancy and running costs associated with the property including rates, insurances, etc. The property has not yet been sold by the Trustee, but they are in the process of trying to get it sold.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1 | Bankruptcy Act 1966 Section 116 | Bankruptcy Act 1966 Section 157