Capital Gains Tax (CGT) 2019

The age of the home worker - Part 2: Calculation of home occupancy expense deductions, deduction apportionment and partial loss of CGT main residence exemption

Source: Australian Tax Forum Journal Article

Published Date: 1 Apr 2019


This article is related to, and builds on, an earlier article The age of the home worker " part 1: deductibility of home occupancy expenses. The earlier article identified the potential expenses incurred by home workers " home occupancy and home running expenses, and then provided an in'depth discussion of the deductibility of home office occupancy expenses. This article deals with the measurement of deductions for home occupancy expenses, and in this, appropriate apportionment methodologies are analysed. The article also deals with the problematic question of the amount of the deduction for the home worker where the relevant occupancy expense is jointly incurred, with a partner, spouse or another party.

The article also analyses the capital gains tax rule that partially withdraws the full main residence exemption where home occupancy expense deductions are available or are notionally available. Considerable complexity and anomalies arise under the exemption withdrawal rule where a dwelling is jointly owned.

Author Profile
Kathrin Bain

Author Profile
Dale Boccabella CTA

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Capital Gains Tax (CGT) 2019

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