Are you working from home and wondering if you can claim any tax deductions for your home office expenses? In this blog post we will explain the criteria and the process for claiming home office expenses in South Africa.
Do You Meet The Following Conditions
According to SARS, you can claim home office expenses if you meet the following conditions:
• You spend more than 50% of your total working hours in your home office.
• You have a specific area in your home that is used exclusively and regularly for work purposes.
• You have an employment contract or a letter from your employer that allows or requires you to work from home.
• You derive income mainly from commission or variable payments based on your work performance.
If you meet these conditions, you can claim a portion of the following expenses as home office expenses:
• Rent or interest on bond
• Rates and taxes
• Cleaning
• Repairs and maintenance
• Electricity
• Internet
• Telephone
• Depreciation of office equipment and furniture
To calculate the portion of these expenses that you can claim, you need to use the following formula:
Home office expenses = Total expenses x (Area of home office / Total area of home)
For example, if your total expenses are R50,000, your home office area is 20 square meters, and your total home area is 200 square meters, then your home office expenses are:
Home office expenses = R50,000 x (20 / 200) = R5,000
You can claim this amount as a deduction against your income tax. However, you need to keep all the receipts and documents to support your claim. You also need to fill in the relevant sections of your income tax return and submit it to SARS.
Claiming home office expenses can reduce your tax liability and save you money. However, it can also have some implications for capital gains tax when you sell your home. Therefore, it is advisable to consult a professional accountant before claiming home office expenses.
If you need any assistance with claiming home office expenses or any other accounting or tax matters, please contact us at www.my-accountants.co.za We are a team of qualified and experienced accountants who can help you with all your accounting and tax needs. 😊 Call or WhatsApp us at 082 903 5737 Email: info@my-accountants.co.za
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