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Re: Calculating the area of a home office

Initiate

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Replies 5

Hi ATO,

 

For calculating home office expenses, does the total area of a house include the garage, carport, and veranda areas?

 

I have measured the area of my office (7.3m2) and of the inside of the house (111m2) which gives a percentage of 6.5% for calculating proportions of mortgage, electricity, water etc.

 

If I include external areas such as the carport and veranda and the area of the garage, this comes to 194m2 (home office is now 3.7%).

 

Thank you.

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ATO Certified Response

Former Community Support

Replies 2

Hi @HomeWorkingMan,

 

Thanks for your patience whilst we checked some information with a specialist area!

 

Generally, the ‘total area’ denominator in the ‘home office’ formula includes all of the area of your ‘home’.

 

This means that the total area calculation in the home office formula ordinarily includes porches, garages, verandas and balconies.

 

Whilst your home might normally be considered to include ‘outbuildings’, it would be accepted that a structure such as a carport wouldn’t need to be included in the total area component of the formula.

 

If you have further questions, you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

 

 

5 REPLIES 5

Taxicorn

Replies 4

The whole of the house is used.

 

Initiate

Replies 3

Thank you for that answer. I'm not sure what is included in the "house". Is the garage part of the house?

Is a carport part of the house give that it is just a piece of tin to keep the water off the car.

 

Is there any guidance on what the "house" is?

 

If the carport was part of the house, is the garden shed then part of the house, or only attached areas?

Most helpful response

ATO Certified Response

Former Community Support

Replies 2

Hi @HomeWorkingMan,

 

Thanks for your patience whilst we checked some information with a specialist area!

 

Generally, the ‘total area’ denominator in the ‘home office’ formula includes all of the area of your ‘home’.

 

This means that the total area calculation in the home office formula ordinarily includes porches, garages, verandas and balconies.

 

Whilst your home might normally be considered to include ‘outbuildings’, it would be accepted that a structure such as a carport wouldn’t need to be included in the total area component of the formula.

 

If you have further questions, you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

 

 

Taxicorn

Replies 1

Jodie,

 

When you said "Carport' do you mean a free-standing building as opposed to one that is connected to your house?

 

Reason being is that we have a carport (fully enclosed) under our main roof.

It has always been refered to as a Carport.

 

Former Community Support

Replies 0

Hi @macfanboy

 

Thanks for the follow up!

 

By definition Total area vs Living area - Living Area includes any square footage under the air conditioning, in this calculation it is the gross house area inclusive of walls.


The total area calculation will include porches, garages carports attached to the home and balconies. There are two methods for calculating expenses on our website: fixed rate and actual expenses.

 

To calculate actual expenses:

  • you record the total expenses for lighting, cleaning, heating and cooling for your home for the year
  • you work out the floor area of the part of your home that you use for work as a percentage of the total floor area
  • you work out the percentage of the year you used that part of your home exclusively for work.

You calculate your deductions for decline in value by working out the amount of depreciation for each item for the year and claim the proportion of that amount which reflects your work-related use.

 

The second method is you can claim a fixed rate of 45 cents per hour. To claim using this method keep records of your actual hours spent working at home for the year, or keep a diary for a representative four-week period to show your usual pattern of working at home.

 

You need to separately work out all other home work area expenses, such as:

  • phone and internet expenses
  • computer consumables and stationery
  • depreciation on computers or other equipment.

By a general definition and the advice provided on our website the calculation should use the Living Area for your calculations.

 

Thanks, JodieH.