The outbreak of COVID-19 unleashed a major impact on every life all across the globe. And, among the various changes, coronavirus had a major influence on our working style. Till date, the lethal virus has infected millions of lives and killed many all across the globe. But, you need not worry anymore as professionals from Deppro are leaving no stone to offer their services during this unprecedented time. Coronavirus threat has led to some major changes in the business space. Now you are supposed to comply with social distancing norms as a business owner. You may also have to purchase plant and equipment for your employees working from home. You will be eligible to claim tax depreciation for the plant and equipment items you bought and the structural changes you introduced.
Here are some essential facts that you should not miss regarding claims post coronavirus outbreak:
1. Seek claims for renovation
Did you introduce some renovations to your office space? Did you demolish the walls to create additional space for your employees in a bid to fulfill social distancing restrictions? It is worth noting that you will remain eligible to claim tax depreciation for eliminating the walls of the office structure. Don’t forget to specify such renovations in rental property depreciation report that you will prepare.
2. Things to claim while running a business from home
If you have decided to do away with your business space, you will become eligible to claim tax depreciation for the following:
Any fit-out at your office space that you eliminated as a result of your lease agreement. You can claim it as scrapping for the asset that you eliminated. It will also include a portion of Division 43 claims for the structural part of your main place of residency utilized for business purposes. A portion of Division 43 plant and equipment assets at your main place of residence that you utilized for business purposes. It is worth mentioning that assets worth $1,50,000 will remain available for immediate asset write-off. Tax depreciation investment property has emerged as a vital tax allowance to claim.
3. Phone calls
If you are making calls pertaining to your business as well as personal from your home, you can claim a deduction for calls linked to your work.
4. Occupancy expenditures
You may also seek a claim for expenditure that you pay for owning or renting your property. These expenses may include rent, interest, water charges, mortgage interests, and land taxes, among others. You may also claim a deduction for running expenditures. These expenditures are the additional charges that you incur from using your home facilities for business. It will include electricity expenses for warming and cooling, repairs cost on depreciating assets, lighting, etc.
The pandemic has caused a major impact on office space and things that you can now claim. If you are earning personal services income or PSI, you will be able to claim a deduction for occupancy expenditure like rent or mortgage interest. You may hire professionals to prepare depreciation on investment property ATO report. Meanwhile, an individual’s presence is exempt from capital gains tax when they decide to sell under “main residence exemption”. But if your home becomes your major place of business, you will remain entitled to a limited exemption.