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

Published on 01 Apr 19 by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE

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 profiles

Kathrin Bain
Kathrin is a Lecturer, School of Taxation and Business Law, UNSW Business School, UNSW Sydney - Current at 29 May 2019
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Dale Boccabella CTA
Dale has 18 years experience teaching a wide range of Australian taxation law courses at both undergraduate and postgraduate level including goods and services tax, fringe benefits tax, taxation of companies, tax administration and tax avoidance. Dale is currently teaching at the University of New South Wales and has also published over 70 articles on a wide range of areas of Australia’s taxation system. - Current at 29 May 2019
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