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Re: Checking I am calculating my home-business rent deduction correctly (as a business expense)



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Good morning,

Thank you very much for making this forum available, it is great!

I just wanted to ask a question today regarding incorporating part of my rent costs as a business deduction in my tax, to ensure I am approaching this correctly.

I have an established music/tutoring-oriented business working from home, with three discreet spaces that are all used exclusively for business (my office; my tutoring space; my rehearsal space where I also film courses for my online school). I am a sole trader with an ABN.

My conservative calculation is that these spaces comprise circa 30% of the space in my home. I have rounded this down to 25% just to be safe, however.

My partner and I rent the property for $430 per week. Am I correct in assuming that my deductible rent expense here would be 25% of this cost, IE $107.50, per week?

All the best, looking forward to your response.