Question for Rosco regarding Home Office

[Tom]

Hi Rosco,

Thanks very much for your input on this forum, it always really useful.

Could you please let me know about this...

I have a legitimate home office set up for which I claim 14% of all of the general allowable costs PA. My question is, if I undergo renovations to the property (for example landscaping, building works etc) am I able to claim the 14% of those costs as well?

Thanks in advance for your advice.

Cheers

Tom

[Anthonyacat]

Perhaps a private message would have worked? Not Rosco, but since it's on the main forum I assume you want other opinions also...

As far as I am concerned, the costs of repairs and renovations to the property are claimable also, yes. Though you would have to take into account the capital limitation, which I would imagine would prevent most of your claims.

Some accountants would prefer to take the view that if it doesn't affect the specific 'office' area of the house, it's not claimable, but I argue that the house and its immediate surroundings are a single unit, without which the office would not be able to function. However, those same accountants would usually claim 100% of, say, repairing a hole in the wall of your 'office', while I would still recommend just the standard percentage claim, so it 'comes out in the wash' so to speak.

[Rosco]

Hi Rosco,

Thanks very much for your input on this forum, it always really useful.

Could you please let me know about this...

I have a legitimate home office set up for which I claim 14% of all of the general allowable costs PA. My question is, if I undergo renovations to the property (for example landscaping, building works etc) am I able to claim the 14% of those costs as well?

Thanks in advance for your advice.

Cheers

Tom

Hi Tom,

As you have probably read previously, be careful with 14%, as that is high for a property investors home office. If you are using the office for your PAYE job or personal use, this would reduce your %.

1 - I would split repairs / renovations into the area
- 100% private areas - if 100% private area such as your bedroom, then I would claim nothing
- 100% business areas - if office is 100% business, and you paint the room, then I would claim 100% as specifically relates to the business use (if it is allowed as a repair, see 2)
- Mixed use - So painting the outside, fixing the driveway, doing the gardens up. I would claim the 14% (if it is allowed as a repair, see 2)

2 - Is it a repair or asset? You still need to determine if the expense is a repair, a depreciable asset or a blackhole cost
For example, if you have just purchased the property, the costs are likely to be a cost of buying the property and not a repair.
If you put in new carpet in the whole house, this would be an asset, and I would depreciation your 14% business use

Ross

[Rosco]

With your renovation work, it depends exactly what is done as to whether it is a repair or asset.

If you are extending and adding rooms, this is an asset, so is not claimable and most of it will be building, so no depreciation.

Note - I'm not going to go through your renovations on this forum and tell you which is which!


Ross

[Bluekiwi]

With your renovation work, it depends exactly what is done as to whether it is a repair or asset.

If you are extending and adding rooms, this is an asset, so is not claimable and most of it will be building, so no depreciation.

Note - I'm not going to go through your renovations on this forum and tell you which is which!


Ross

Good on you Rosco.

Maybe you can start an "Ask Rosco" thread

[Tom]

Hi Rosco,

Thanks for your reply, I appreciate your advice. I was thinking the answer would fall along those lines so it is great to have confirmation.

Regarding the 14%, I run a legitimate business office from home in which I also run my property investment business from so the 14% is a true reflection of the area used.

Thanks again.

Cheers

Tom

[Tom]

Also Anthonycat, Thank you for your reply and help also.

Cheers

Tom

[sidinz]

Hi Rosco,

Thanks for your reply, I appreciate your advice. I was thinking the answer would fall along those lines so it is great to have confirmation.

Regarding the 14%, I run a legitimate business office from home in which I also run my property investment business from so the 14% is a true reflection of the area used.

Thanks again.

Cheers

Tom

Re-read what Ross wrote about mixed use. You have just stated that this 14% area is mixed use, although not private/business but business/business. I hope you're not claiming the whole office for two separate businesses. That would be taking the proverbial.

[Tom]

Re-read what Ross wrote about mixed use. You have just stated that this 14% area is mixed use, although not private/business but business/business. I hope you're not claiming the whole office for two separate businesses. That would be taking the proverbial.

Hi Sidinz,

Thanks for your reply.

Nope, I don't do that. The total area of 14% is mixed use (business/business) and I only claim a total of 14% (once), I don't double-dip.

Cheers

Tom

[Bluekiwi]

Hi Sidinz,

Thanks for your reply.

Nope, I don't do that. The total area of 14% is mixed use (business/business) and I only claim a total of 14% (once), I don't double-dip.

Cheers

Tom

Not even when no one is looking and its garlic onion ?