{"id":1541,"date":"2020-08-30T07:26:41","date_gmt":"2020-08-30T07:26:41","guid":{"rendered":"https:\/\/www.vitalstatistics.info\/?p=1541"},"modified":"2020-08-30T07:27:40","modified_gmt":"2020-08-30T07:27:40","slug":"tax-shields-for-home-owners","status":"publish","type":"post","link":"https:\/\/www.vitalstatistics.info\/tax-shields-for-home-owners\/","title":{"rendered":"Tax Shields For Home Owners"},"content":{"rendered":"
Tax shield refers to reducing the taxable income of individuals or corporations achieved by claiming allowable deductible expenses such as mortgage interests, insurance premiums, depreciation costs, maintenance costs, and the like. It is termed as such because it technically shields a portion of a taxpayer\u2019s income from taxation.<\/p>\n
While tax shields vary depending on the prevailing tax laws and codes in a particular city, state or country, it generally benefits taxpayers whether they are big corporations or small businesses, property investors or owner-occupiers, entrepreneurs or employees.<\/p>\n
Citizens of Australia, particularly property and homeowners, enjoy several tax shield benefits. The tax deductibles differ, though, depending on the ownership structures. The tax shield that property investors want differs from that of the owner-occupiers.<\/p>\n
Are you a homeowner in Australia? Are you aware of the many ways by which you can benefit tax shields from your property? Here are just some of those tax shield benefits:<\/p>\n
Tax Shield in Working from Home<\/u><\/strong><\/p>\n Are you one of the more than 50% employed Australians who work digitally from home? If yes, you could be entitled to a particular tax shield for working from home.<\/p>\n Suppose you are solely working in a dedicated home office. In that case, you can have the following as tax-deductible expenses: mortgage interest payments, home insurance premium, office maintenance expenses, office equipment depreciation, telecommunication costs like phone and Internet connectivity, and utility expenses, including gas and electricity.<\/p>\n Suppose you are solely working from home but do not have a dedicated home office. In that case, you can still avail yourself of certain deductions like the depreciation of office equipment and telecommunication costs.<\/p>\n If you have a dedicated home office but do not work solely from home, you can still deduct some of the things mentioned above, except for mortgage payments and home insurance.<\/p>\n However, the catch is that while residences are generally exempt from Capital Gains Tax (CGT) when sold, those having home-based businesses may potentially not receive the full CGT exemption. You find it tricky? It is and can be confusing to determine which expenses are tax-deductible and which are not. It is best then to seek the professional advice of Depreciation.com so you can make an informed decision when it comes to the tax shield that you can avail of.<\/p>\n