A taxpayer who lives on a main road, decides to convert part of his home as a business but needed to make some alterations, like building a separate entrance and adjusting internal walls, and so that the shopfront had clear signposting that distinguished the business entrance.

The cost of the construction of the alteration was $80,000 and the business opened on after the alterations were completed on 1 August 2019.

The private residence of the house was reduced to 75%, which had eligible construction costs of $300,000 back in 2009.

What is the maximum capital works deduction that can be claimed by the taxpayer?

Select one:

a. $7,500

b. 8,995

c. $,9,500

d. $9,995

e. $1,885