Nick has a place of work but often chooses to work from home at night...
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Accounting
Nick has a place of work but often chooses to work from home at night to ensure his business finances are kept up-to-date. Nick determines his home office occupies 5% of the house.
His expenses incurred during the year in relation to the house are as follows:
Electricity totalling $1,200
Mortgage repayments $25,000 (interest is $15,000 and the remaining capital)
Rates and taxes totalling $3,750
Water expenses totalling $500
Based on the above facts and relevant tax laws, what amount can Nick claim as an allowable deduction regarding the home office? (select the best answer)
A
$1,023
B
$60
C
$0 he has a place of work
D
$273
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