Can a Shed be the Deductible Business Expense?

Can a Shed be the Deductible Business Expense?

Can a Shed be the Deductible Business Expense?
Whether you purchased a shed for workspace or looking to buy one in and use it as a place of business, we would like to help you by making it easier.

We will also help you in outlining whether your outdoor shed can be put down as a business claim, by weighing up your options and counting your expenses.

If you are going to use your shed exclusively for business purpose, there are two options when it comes to tax time. 

Option 1: Your Shed is on your Business Property

You may have the option to put your shed on a depreciation plan, which is, you can claim the cost of the shed for a time, fending off the depreciation as an asset, if any. 

Any small business with the productivity of less than $10,000,000 can acquire assets up to $ 20K. If your outdoor shed is on your business property, you can write off it as a business expense and include all valuables and equipment in your shed up to $20K. 

Option 2: Your Shed is on your Own Property 

If your shed is used purely as a workplace for business, but your home isn’t your main place of business, perhaps, you will be able to approve some points as an expense. 

If your shed is placed on your home property, and you use it both for personal and business, you’ll need to calculate the percentage of time spent working from the shed. Once it is has been worked out, you can discuss your options with an accountant.

The Australian Taxation Office has a handy Home Office Expense calculator on their website to help you calculate any claims, and a very good guide to working from home.

ato.gov.au/calculators-and-tools/home-office-expenses-calculator/

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