Absolutely, there are specific rules that enable you to claim deductions gradually for the expenses incurred on renovations or improvements made to transform a section of your home into a business area. It’s important to note that if you do convert your home into a place of business, it may have implications on your eligibility for the main residence exemption for capital gains tax (CGT) when you sell your home.
To gain a comprehensive understanding of the deductions you may be entitled to claim, the essential records you should maintain, and the potential impact on your eligibility for the main residence exemption, I recommend visiting the official website of the Australian Taxation Office (ATO) at ato.gov.au. Simply search for “capital works deductions” to access the relevant information and guidance.
