I'm an employee working from home who built a dedicated home office detached and removeable from the house I'm currently renting in half way through FY 2021-22. I'm intresting knowing what I can claim on my FY 2021-22 tax return to reduce my tax liability. I understand the methods to choose from include the Fixed rate method, Actual cost method, Shortcut method. I also understand occupancy expenses aren't claimable, in my case I thinks that's my rent.
What of the below elements if any are claimable under:
* actual cost method and
* fixed rate method (beyond the hourly 52 cents per hour component)
*Claimable by other means
Cost Elements I have incurred:
Timber framing >$300
Windows >$300
Roof >$300
Cladding >$300
Plunge saw purchased to cut cladding >$300 with no intended future use
Other tools (<$300 inidiviually, >$300 grouped) without future intended use
Guttering >$300
Floorboards >$300
Network cabling <$300
Wifi Access Point <$300 (>$300 if grouped with network cabling above)
Electrical cabling >$300
Electric work performed by electrician >$300
Split system air conditioner >$300
Plaster >$300
Downlights (<$300 inidiviually, >$300 grouped)
Initial Paint >$300 70% of paint purchased on inital painting with 30% remainder intended for repairs
Paint repairs consumed 10% of remainder of intial paint purchase, plus additional purchase of <$300 in paint not in hand
Blinds (indiviudally <$300, grouped >$300)
Sit and stand desk >$300
Webcam <$300
Computer speakers >$300
Monitor stand <$300
Total cost of above elements is $16,000
Thank you in advance for response. I'm really hoping the answer isn't get a private ruling as the elements listed should hopefully be straightforward for an tax guru to categorise. I just haven't found on the ATO website what deferentiates office furniture and fittings to other purchases and to what extent an office build by an employee working from home is claimable, outside of you can not claim occupancy expenses such as council rates and mortage repayments.
Also, to make it easy, in the above example, I purchased everything on 1 Sept 2021, completed build taking me about 250 hour unpaid to build and began working in office 1 Jan 2022 for employee duties. Work didn’t allow me to go into the office to work between 1 Jan 2022 to 31 Mar 2022, but allowed the option to work from the office 1 Apr 2022 to 30 Jun 2022 which I didn't take up. My home office is exclusively used to perform my work an an employee.
Secondary question, can I claim the 250 hours x 52 cents under the fixed rate method I worked unpaid to construct my home office for the sole purpose to work in the office an an employee?
Thank you
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