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MichelleG(Dynamo)Dynamo
22 May 2021

Hello - asking for a young lady who is employed full time but also has her ABN Sole trader business ( furniture/art restoration) which she does after work during the week and on the weekends. She has a dedicated room in her rental property ( about 20% of the floor area). Is she eligilble to deduct rent under the occupany rules? How would she work this out seeing as the number of hours she can feasilbly work as a sole trader in that room is limited to her time outside of her primary job? Thank you

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Bruce4Tax(Taxicorn)Taxicorn
23 May 2021

asking for a young lady who is employed full time but also has her ABN Sole trader business ( furniture/art restoration) which she does after work during the week and on the weekends. She has a dedicated room in her rental property ( about 20% of the floor area). Is she eligilble to deduct rent under the occupany rules?

Yes - https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/Deductions-for-home-based-business-expenses/Sole-trader-or-partnership-home-based-business/

How would she work this out seeing as the number of hours she can feasilbly work as a sole trader in that room is limited to her time outside of her primary job?

Rent is based on floor area, not hours - on the basis that a room set aside is never used for anything else.

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Bruce4Tax(Taxicorn)Taxicorn
23 May 2021

asking for a young lady who is employed full time but also has her ABN Sole trader business ( furniture/art restoration) which she does after work during the week and on the weekends. She has a dedicated room in her rental property ( about 20% of the floor area). Is she eligilble to deduct rent under the occupany rules?

Yes - https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/Deductions-for-home-based-business-expenses/Sole-trader-or-partnership-home-based-business/

How would she work this out seeing as the number of hours she can feasilbly work as a sole trader in that room is limited to her time outside of her primary job?

Rent is based on floor area, not hours - on the basis that a room set aside is never used for anything else.

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