Home Office Equipment Percentage Used for Work

Lately I've been working from home a lot. And I've bought some new computer equipment to make working from home better.

When it comes to tax time - I'm supposed to figure out what percentage of usage that equipment is allocated for business vs private/personal use.

But… do big businesses do this, too? People in an office are going to be goofing off browsing the web or watching YouTube maybe 10% of the time (maybe more, maybe less). They'll make personal calls on the deskphone. And they'll spend some of the time on the furniture in the process of undertaking non-business-related activities.

Do big businesses tell the tax office all their office equipment and computers are only used for 90% business use? Or do they tell the tax office it's 100% business related? In which case surely home office users can tell the tax office the same thing?

What's your experience with claiming something from the tax office as used for work but also for private use?

Comments

  • You are supposed to keep a diary with details of your work related use. See https://tv.ato.gov.au/ato-tv/media?v=bd1bdiubgwogok
    you can do it using ATO app

    this document also sets the guidelines on how to claim a deduction for WFH expenses
    https://www.ato.gov.au/individuals/income-and-deductions/ded…

    Business items, purchased by the business owner can be claimed entirely as a business expense. They are counted as their assets. If you bought computer equipment / stationery / uniforms for your employees, most of it can be claimed as a business expense, depending on how they're used by the employee https://www.ato.gov.au/individuals/income-and-deductions/ded…

  • +1

    Uh there are different tax rules for individuals and businesses, especially for large corporations that meet certain earnings criteria.
    IE asset write-off

    Also, as a business you cannot dictate how everyone uses your business assets, but you do try to limit unintended use by blocking X sites, having the landlord provide shared spaces, breakout areas etc

  • +2

    Businesses don't do that, because they bought the thing for a business purpose. They didn't buy it for you to browse Facebook (even if they don't care that you do that occasionally). Your browsing of Facebook at lunch time does not give any non-business-related benefit to the business owner.

    You don't have to record the 5 minutes you spend reading the news after lunch.
    But if you spend all night and all weekend on world of warcraft, yeah, you shouldn't get the tax man (read: all of us) to pay for that.

  • But… do big businesses do this, too? People in an office are going to be goofing off browsing the web or watching YouTube maybe 10% of the time (maybe more, maybe less).

    No, generally it's because those items are purchased by the business, so they are business assets and the business claims the 100% of that dollar value as a business expense.

    If you work from home, and have purchased a computer chair to work from home, it's not owned by the business. You are trying to say that something purchased for yourself is being used for business, so you have to justify how much of it you use for business.

  • claiming something from the tax office as used for work but also for private use?

    Depends, but rarely 100%. 50/50 is common. Best to check with your tax accountant.

  • hi
    I'm your boss
    can u keep a record of all the times u are goofing off at work looking at YouTube and taking personal calls

    I need to deduct it off you pay

    thank you.

    your boss

    • Why do you think I'm in before 8am, and leave around 6pm? Well, yeah, because it's sheer hell taking public transport in the peak… true…

      • +1

        what u only come in at 8 and leave at 6pm

        deducting more pay
        i expect you to be here 24/7
        and built a bed under ur desk

        portable cause we hot desk too

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