Great point,
Thanks for raising this question.
As mentioned, this is not advice we just share ideas just like on this forum we all enjoy.
Everyones accounting needs are different and you should endevour your own research into what is best for your siuation. I am not an accountant, nor will I get involved with an irrospective clause from the bottom draws of the ATO website. Im sure with the experience you have gained over the years you can get the right help from a your tax professional if you dont already know this answer.
Regards,
Nath.
Thanks for raising this question.
As mentioned, this is not advice we just share ideas just like on this forum we all enjoy.
Everyones accounting needs are different and you should endevour your own research into what is best for your siuation. I am not an accountant, nor will I get involved with an irrospective clause from the bottom draws of the ATO website. Im sure with the experience you have gained over the years you can get the right help from a your tax professional if you dont already know this answer.
Regards,
Nath.
I been doing this long enough to have eyes and ears just about everywhere, not just a finger on the pulse in my areas of interest.
Question you?
This is the Real Estate & investment industry, everybody should question everything.
Caveat Emptor
And btw your accounting "expert" seems to forget that if you claim tax deductions for using a home office, you will pay CG tax on that portion of your ppor. And the CG liability may actually compound over the years, just like the value of the whole house.
If your renting, than that's a different story, as a portion of the rent may become tax deductable.
So people would need to make a few considerations before claiming a home office.
http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR9330/NAT/ATO/00001
36. Generally, capital gains tax does not apply to a person's sole or principal residence. However, subsection 160ZZQ(21) applies to deem a capital gain (or loss) to have accrued to the extent to which the sole or principal residence disposed of was also used for the purpose of gaining or producing assessable income during the period of ownership. IT 2673 states that as a rule of thumb, it can be expected that where an area of a home is a place of business the capital gains provisions will apply . The calculation of any capital gain or loss is discussed in paragraphs 21 and 22 of IT 2673.