Tax allowance for home office

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You can find more information under Claiming a tax deduction for expenses for a home-based business. Subject to the personal service income rules, if the home is your principal place of business then you will be able to claim a portion of your Mortgage interest under occupancy expenses. The portion of the costs that relates to the room or workshop used as a place of business may be deductible. A common method of working out how much to claim is the floor area (as a portion of the floor area of the home as a whole). So for example if the portion of your home office is 20% of the floor space of your home and the annual interest you pay on the mortgage of $375,000 is $10,000. Your allowable deduction is $2000 ($10000 - mortgage interest x 20% - home office floor space). Links Claiming a tax deduction for expenses for a home-based business

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