Hi,
I am a sole trader that offers babysitting for multiple families in my area, sometimes with two families kids at once (fully with their consent of course!)
To help manage this, i have a dedicated downstairs area, garden and kitchenette that is setup with play pens, sandpits, toys, and other things, exclusively for facilitating the babysitting.
I do not use this area for any other activities, at any times.
With this in mind, can i claim occupancy expenses for the percantage of the floorplan that this area makes up?
According to the ATO:
"You can only claim occupancy expenses if you have an area set aside that has the character of a 'place of business'. Indicators that the area of your home you've set aside to work from may be a place of business include:
- the area is clearly identifiable as a place of business
- the area isn’t readily capable of being used for private or domestic purposes
- the area is exclusively or almost exclusively used for carrying on a business
- the area is used regularly for visits of clients or customers."
Based on the above, i believe i can claim the expenses, but wanted to check first.
Thank you!
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