Can I Claim Office Furniture on My Taxes?
Before we go any further – if you worked from home this financial year due to Covid, and you’re looking at claiming your Home Office furniture and expenses – it’s cool; we’ve got you. Not only does the ATO have pages of information on their website relating to the special conditions around Covid – they’ve even put together This Handy Factsheet specifically for claiming working from home expenses. Not working from home? Read on.
If you’re fitting out a new office layout or refurnishing your existing commercial space, it can be challenging to keep on top of the costs and furniture expenses. Office furniture is a fundamental element for how a business operates, how employees’ function and company innovation and collaboration. So, what does a tax deduction office furniture claim look like?
Between office furniture, storage facilities and the general costs of upkeep within a commercial space, which expenses are eligible for tax deductions will largely depend on whether or not costs are directly related to the business and how the business operates.
As a business owner in Australia, you’re entitled to keep a record of business expenses and claim a deduction to reduce the income you pay on tax. Even if you’re an employee of a large (or small) organisation, you’re entitled to make claims to receive tax deductions for workplace expenses.
If you’re reading this article, you are probably wondering “Can I claim office furniture on my taxes?”
Can I Claim Office Furniture on My Taxes?
In short, yes. As a business owner, you can claim a tax deduction for most expenses from carrying on your business, as long as they are directly related to earning your assessable income. Office furniture? Well, it’s pretty clear that you, nor your employees would be able to carry out the necessary work without relying on a functional, practical workplace setting.
If you’ve purchased office furniture such as office desks, shelving, office chairs and storage, you can claim tax deductions for most of the costs involved in running a business. The three general rules around what can be claimed for tax deduction office furniture are:
- The expense must be for business, not private use
- If the expense is for a mix of private and business use, you can only claim the portion that is used for business
- Business owners must keep records to prove expenses
Generally speaking, office furniture is classed as a capital expense. Capital expenses are the costs you incur buying assets that have a useful life over a year. As well as office furniture, this includes things like machinery, vehicles, patents, books, and general equipment.
As an employee, you can also claim a tax deduction on office furniture items like chairs, desks and storage – so long as you have not already claimed these expenses with your employer.
Tax Deduction Office Furniture Claims
Tax time doesn’t have to be complicated. When it comes to running a small business, you need to consider all of the expenses that are directly related to assessable income. One of the most significant contributors to tax deductions is office furniture. Tax deduction office furniture inclusions are generally office chairs, desks, tables, storage facilities and other functional items that provide a workplace setting.
It doesn’t matter if you’re working from home, you’re running a small business or you’re an employee of a large organisation. As an Australian, you are potentially eligible to get some money back from the Australian Taxation Office (ATO) after lodging your annual tax return. Sole traders, those in partnerships and companies can all make tax deduction office furniture claims through their necessary tax return lodgings.
Can I Claim Home Office Furniture on My Taxes?
If you’re wondering “Can I Claim Home Office Furniture on My Taxes?”, the guides around home office furniture tax claims have recently changed. If you operate a business from home or are now working from home, there are a number of home office-based expenses that can be claimed for tax deductions. With so many of us working from home during the coronavirus crisis, there are several home office expenses you have the potential to claim as tax deductions. Home office equipment tax deductions include:
- Phone and internet expenses
- Computer, desktop consumables and stationery
- Home office equipment and furnishings
Given that so many of us have had to move to remote work during the COVID-19 pandemic, it’s likely that you may have invested in some new home office equipment and furniture. Whether it be a new chair, laptop, stationery or desk accessory, it’s very likely that you’ll be able to make a claim for tax deduction home office furniture pieces and equipment.
Home Office Equipment Tax Deductions
How do home office equipment tax deductions work? Well, the ATO has thankfully set aside home office guides for those who are incurring working from home expenses. Generally speaking, lodging tax deduction home office furniture claims will result in a deduction for:
- The full cost of the items, if it’s less than $300 or
- The decline in value or depreciation for items over $300
Suppose you’ve recently set up your home office with office furniture items like a new desk, ergonomic chair, shelving and organisational accessories. In that case, you can claim a deduction for the decline in value of that furniture to the extent that it related to your work activity. The “effective life” of the asset or furniture piece will allow you to claim a deduction for each work-related item.
Capital items, such as office furniture pieces that are costing less than $300, can be written off in full immediately and do not need to be depreciated.
Claiming Office Furniture on Taxes
If you’re still wondering “Can I claim office furniture on my taxes? The answer is yes. Regardless of whether you’re working from home or you’re a small business owner with a commercial space, office furniture is a fundamental element for how your business will operate and generate income. Therefore, it is very likely that all office furniture items that you purchase for commercial and business use will be tax deductible.
If you want to claim office furniture on taxes, you need to keep strict and accurate records of your office furniture expenses; whether it be for your home office or your commercial space. The ATO is very diligent when it comes to tax deductions – it’s very common for people to have insufficient documentation to support office furniture tax deduction claims. Be sure to keep accurate records of all of your office expenses to ensure that you are able to lodge a clear, concise and correct claim on your office equipment tax deduction.
Epic Office Furniture
Looking to set up your new office space or finally invest in some quality home office furniture? You’ve come to the right place. Epic Office Furniture is the leading online retailers for the best office furniture and equipment in Australia.
From our office chairs to our organisational desks and full office fit-outs, we’ve got every piece of equipment you could possibly need to furnish your working environment. What’s more, you’ll be able to work in comfort and style, rest assured that the office furniture pieces are eligible for tax deductions! If you have any questions about our furniture, do not hesitate to get in touch with one of our friendly team members today.
*This is general information only and does not constitute taxation or legal advice. Seek professional tax and/or legal advice to determine whether you are eligible to make a tax deduction claim for any purchases.