As a public accountant, registered tax agent and Australia's sole recognised, expert home business adviser, one needs to understand what the ATO considers to be "a place of business' and to then set up their rental property accordingly, failing which, they will certainly squander what is a massive opportunity to simultaneously enhance their wealth and lifestyle.
Depending on the orientation of the home, the size and make-up of the dwelling including the external characteristics and the taxpayers hobbies and personal interests, done well, a significant portion of the rent can be claimed as an "occupancy expense" thus reducing assessable business income.
The instant asset write-off provisions also allow for those parts of the home that qualify, for a fully tax deductible furnishing/fit-out.
One should then carefully consider the following, each as inextricably linked to a home business:
*Quality, location and position of the subject property
*Motor vehicle preference
*Location and choice of school for the kids
*Involvement of partner/spouse
*Potential to create multiple businesses
*Outlook as to potential future home ownership
*And much more!
Whilst it may sound like a riddle, the tax law puts the home business owner in the unique position of renting a property with outstanding lifestyle attributes such as stunning views, a swimming pool, magnificent outdoor entertaining area, luxury kitchen and bathrooms etc, etc and, to obtain massive tax deductions that allow them this superior lifestyle at or near the same true ‘net’ cost of putting up with having to live and work in a far inferior property.
The following link whilst tilted towards owner-occupiers, still points to a vast array of beneficial information and services for renters: www.deductyourhome.com.au.
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FREE Report: Deduct Your Home—Why a Home Business Offers So Many Significant, Immediate And Lasting; Business, Taxation, Wealth And Lifestyle Benefits.