Most of us would prefer to see some money coming back to us rather than paying more to the tax man. Generally, you cannot claim tax deductions for the cost of renovating your own home.
Tasteful home improvements are likely to add value to your home. This is great when it comes time to sell. However, if you set up a business and work from home, here is an important question to ask your accountant:
Will I have to pay GST or Capital Gains Tax when I sell my home?
Tip: It’s a good idea to have your home valued when you first decide to use it as your place of business, rather than when you first purchased it. A higher value at the time you started the business will reduce the capital gain.
As you can see, for the purpose of tax considerations, it’s important to decide very early if you are going to use your home as a principal place of business or not.
If you are renting and work from home, naturally, there are no capital gains to consider and all the usual tax deductions apply.
When you are setting up a business, it’s important to find a good tax accountant right from the start. The expense of using an accountant to support your business is a wise investment, and will help put you in a stronger financial position to succeed.
The information above is general information and may not be suited to your situation. It is not to be considered as tax advice. We strongly recommend that you seek business and taxation advice.
If you are looking for an accountant or bookkeeper, Jim’s Group have a division dedicated to providing these and many other services that may be helpful.
For more information, contact Jim’s Group on 131 546 or visit www.jims.net to learn more about Jim’s service divisions.