During the 2020 income year, Tamara converted her spare room into a convenient home office. Although her main office is in Melbourne’s CBD, she finds it useful to do all her admin work from home. She incurred the following home expenses: 

Electricity costs: $5,000 

Internet costs: $1,000 

Telephone expenses: $700 

Council rates and taxes: $3,750 

Home loan repayment amounts: $2,000 per month 

Required: 

Assume she used her home office for the entire financial year and that she estimates her business use percentage to be around 25%. 

Calculate Tamara’s allowable deductions on her home expenses for the 2020 year.

Answer rating: 100% (QA)

Electricity costs 5000 Internet costs 1000 Telepho... View the full answer