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Re: Claim depreciation on solar panels if work from home?

Newbie

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Replies 8

Dear ATO Community,

 

1. If I am working from home, and had solar panels installed this year, would I be able to make a claim for them as a depreciating asset?

 

The solar panels are producing electricity during the day when I am working from home.

 

As a result my electricity bills are much lower, but this is because of the solar panels.

 

2. Additionally, I had an air conditioner installed in my home this year, including the home office.

 

This air conditioner was necessary to work from home in the summer/winter months.

 

Would I be able to make a claim for the air conditioner as a depreciating asset?

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Most helpful response

Taxicorn

Replies 7

@bytebeach 

 

It all really depends on whether your home is your place of business (a) or if you are working from home due to choice (b)

 

(a) The solar panels would be depreciated based on the area of the house that is set aside for business eg house = 200 square meters and area is 20 square meters then 20% can be claimed as a depreciating asset, same with the air-conditioner.

Be aware that solar panels have an effective life of 20 years and an air-conditioner of 10 years, so there will probably only be a small deduction each year.

 

 

(b) No.

 

8 REPLIES 8

Most helpful response

Taxicorn

Replies 7

@bytebeach 

 

It all really depends on whether your home is your place of business (a) or if you are working from home due to choice (b)

 

(a) The solar panels would be depreciated based on the area of the house that is set aside for business eg house = 200 square meters and area is 20 square meters then 20% can be claimed as a depreciating asset, same with the air-conditioner.

Be aware that solar panels have an effective life of 20 years and an air-conditioner of 10 years, so there will probably only be a small deduction each year.

 

 

(b) No.

 

Newbie

Replies 1

Thanks, I am in position (b) due to covid, so will likely just claim the 80c per hour instead

Taxicorn

Replies 0

@bytebeach 

 

Be careful claiming this new method as whilst you are claiming it you can't claim anything else like, mobile phone, internet, stationery, laptop etc.

 

I very rarely claim this for clients as it doesn't always work out better.

https://www.ato.gov.au/general/covid-19/support-for-individuals-and-employees/employees-working-from...

Newbie

Replies 4

ok,   can employee claim   (deprec) cost of solar panels  if they were required to work from home, e.g.  Covid

 

&  can investor claim if they have several rental properties & shares to manage  & they don't have a separate office so they conduct his work at home

thanks

ATO Community Support

Replies 3

Hi @AtcatFinancial,

 

Your questions ' can employee claim (deprec) cost of solar panels  if they were required to work from home, e.g.  Covid'

This was answered via @macfanboy's first post. If you are working from home due to choice it would be (b) No.

 

Can investor claim if they have several rental properties & shares to manage  & they don't have a separate office so they conduct his work at home?

Again this is relevant to having a place set aside as a home office. For eg: If you're in the business of investing in rental properties or you class yourself as a share trader and report your income as a business as opposed to capital gains, then you may be able to apportion the cost of solar panels and depreciate them.

 

However, if you are an investor and your costs relate to record keeping for tax time, you would not be able to claim this under home office expenses. 

 

Please use the links below for further information.

 

Links-

Investor or Share trader.

In the business of letting rental properties.

Work related expenses - home office.

Rental expenses.

 

All the best.  

 

 

Newbie

Replies 2

I just wanted to double check with a member from the ATO (your phone support team advised me there was no public or internal documention regarding solar panels and told me to ask on this board for clarification) if part of the home is used as a taxpayer's sole base of operations for income producing activities (in my case where no other work location is provided to me as an employee by my employer). Can you claim a deduction on a proportion of the cost of solar panels as a depreciable asset?

 

Note this is NOT due to COVID 19.

ATO Certified Response

ATO Community Support

Replies 1

Hi @SolarQuestion,

 

As @macfanboy previously advised in this thread - It all really depends on whether (a) your home is your place of business or (b) if you are working from home due to choice -

 

(a) The solar panels would be depreciated based on the area of the house that is set aside for business eg house = 200 square meters and area is 20 square meters then 20% can be claimed as a depreciating asset, same with air-conditioner.

Be aware that solar panels have an effective life of 20 years and an air-conditioner of 10 years, so there will probably only be a small deduction each year.

 

(b) No.

 

You can also view working from home expenses here.

 

Newbie

Replies 0

Thanks Jodie for confirming!

 

For anyone else looking, the ATO's definition of a "place of business" is listed here with loads examples for different situations.