What if I use my Personal Computer for Work?


The answer to the above question is “Yes,” it is possible to claim your computer as a tax deduction, but you must be using it for work related activities. If you are using your home computer when you are working from home, or catching up on your work at home it is possible to claim the % of business costs, that is related to your work related use. Check with one of our tax professionals to ensure you have all potential deductions calculated correctly.

Getting started

To claim your computer as a tax deduction, the first thing to do is to be eligible to claim a 'business use percentage' for your computer as a tax deduction. To get started with this, you will need the proof of purchase for the computer (the receipt), the purchase date, the business use percentage, the software you use for work purpose on your computer, and the work purpose usage. To substatiate business use, a log of use for at least 4 weeks should be kept, taking note of the time spent on your computer for both personal and work use. With this record, you will be able to calculate the percentage of your computer use for work.

Claiming internet usage on your computer

You can also claim a tax deduction for the internet usage on your computer. You can do this by calculating the total amount of internet usage for work purposes (similar log as for your computer). This log will allow you to claim the business percentage as a tax deduction for your internet usage for work related activities.

Can you claim your deduction as depreciation or as a one-off tax deduction?

The price of the computer in question determines the answer to the above question. If the price of your computer is under $300, you can claim a one-off tax deduction with an immediate tax deduction for the percentage of the purchase price of the business use. However, if the cost of your computer is more than $300, then you would claim the business % as deduction as depreciation over the period of use, generally 3 or 4 years depending on the type of computer.

What if I lease a Computer, can this be claimed?  The answer to this is yes, you can if you use for work, and are not reimbursed by work. Once again you need to consider the business percentage and keep all your rental receipts.

Can you prove it?

These potential deductions listed above are possible, but only if you use the items for work and can justify by way of a log, and have kept records of the receipts for any costs.  As many employers make equipment available to their staff,  to claim your computer as a tax deduction, you should be able to provide a genuine reason in relation to your job.

Lodge your return before the deadline

For this year, all taxpayers must lodge their returns before 31 October 2018. However, if you have to use a different agent from last year or even a registered tax agent, you will have to contact them before 31 October, in order to obtain the later lodgement dates available to clients of Tax Agents..

Do you need help?

Where here to assist you with all you tax requirements.  


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