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If an expense relates to both income-earning use and private use, you need to apportion (split) it. For example, rates, insurance, internet and power bills, repairs for general wear and tear. Use the following formula to work out how much you can deduct for the expenses that need to be apportioned.

Add up all expenses that need to be apportioned

This is the total amount of expenses you need to apportion between income-earning and private use.

Count the days your asset was used

Include both your income-earning and private use days over the income year.

The combined amount is your asset's total usage.

Divide your income-earning days by total usage

This is your divided amount.

Multiply the total expenses figure by your divided amount

These are your apportioned expenses - the share of your mixed-use expenses that you're allowed to claim.

Add your apportioned expenses to your fully deductible expenses

These are your total deductible expenses. In your tax return you can deduct these expenses from the income you earned from the asset.

You can also use our calculator to work out the private and income-earning use of your mixed-use assets:
5 minutes
Mixed use asset calculator

Work out expenses for your mixed use asset

Go to this tool
Last updated: 28 Apr 2021
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