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Re: Claiming a gas ducted heating unit

Initiate

Views 55

Replies 6

Hi there,

 

My partner is a finance broker (company works for himself) also works from home. Our running costs we claim at 15%. We recently had to purchase new a new gas ducted heating unit as the old one needed to be replaced (cracked heating exchange and leaking gas) to this purchase was essential not an upgrade or anything.

 

I'm wondering if we can claim 15% of the cost? Would this be considered an expense for the business? Or an Asset? 15% equates to $500 incl GST (he is registered for GST)

 

I just wasn't sure and thought it's best to check.

 

Many thanks in advance Smiley Happy

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee

Replies 5

No, you cannot claim the cost of the unit but can claim percentage of heating costs as home office expense 

6 REPLIES 6

Most helpful response

Devotee

Replies 5

No, you cannot claim the cost of the unit but can claim percentage of heating costs as home office expense 

Initiate

Replies 4

Thank you so much for clarifying that! We are claiming 15% for heating costs so will leave it at that Smiley Happy

Taxicorn

Replies 3

@Swifty 

 

So he is running a business from home and the area that he uses represents 15% of your home?

 

Be aware that there will be Capital Gains when you sell the property.

 

Initiate

Replies 2

Yes he is and the office represents 15% of the home so we are claiming 15% running costs for Electricity and Gas. 

I thought CGT is only for if you claim mortgage interest? We aren't claiming mortgage interest. But wasn't sure about the purchase of the gas ducted heating. If I was to claim 15% of the gas ducted heater does that affect CGT? The unit was $3400 so it would be $500 at 15%.

 

Many thanks Smiley Happy

Taxicorn

Replies 1

@Swifty 

 

He is earning income from the property so there will be CGT regardless.

However, it willonly be 15% for the period used / total ownership.

 

Thre are lots of ways to reduce this amount if you understand how Capital Gains works.

You also need amarket value when he first stated using it so you are not using the original cost.

 

Initiate

Replies 0

Ok looks like I might need to double check a few things with the account re: CGT - just to make sure it's done correctly on my end.

 

Thanks for clarifying about the CGT as I wasn't aware of a few things there.