FAQ: I have always worked from home but never claimed a home office expense deduction. I now know that I could qualify. What deduction can I claim in the current year of assessment for equipment that I purchased in earlier years of assessment?
You may qualify for a wear-and-tear allowance on the asset. It will depend on the useful life of the asset. Please consult Interpretation Note 47 “Wear-and-Tear or Depreciation Allowance” (Issue 5) for a list setting out what SARS considers to be the useful life of certain assets, as well as the rules applicable to claiming […]
FAQ: I have a room that I use for my home office but there is a wall of cupboards that is used for linen storage can I still claim for the home office but exclude the square meters of the cupboards?
Excluding the space for the cupboards will ensure that only expenses relating directly to the home office are claimed.
FAQ: I have a full time domestic helper who cleans my home office space daily and I pay her cash at the end of the month. What proof would you require in this instance?
Proof of payment must be retained. The domestic worker should sign an acknowledgement of receipt of the monthly payment. As an employer, you would be required to register for UIF for the domestic worker, proof of payment of UIF contributions may also be requested on audit or verification by SARS.
FAQ: A taxpayer and his or her spouse both require only a laptop to conduct their trade of employment. They share an office at home. The room is 100% an office and is used for nothing else. Does this fail the requirement of exclusive use? Should the house have two separate rooms that are used separately by each spouse for their work?
If the home office is clearly divided between the two spouses’ respective spaces, and each space meets the requirements for a home office deduction, then each spouse could qualify for a deduction. Evidence such as photographs of the room showing the clear division should be taken often. If there is no clear division of the […]
FAQ: If I have solar power during the day, how can I include this in my home office claim because I don’t have receipts for that power?
If no expense has been incurred, no deduction is permitted. Please consult IN 28, paragraph 4.6.2 (b) “Electricity generation” for more detail on installation costs.
FAQ: During verification of home office expenses by SARS, one of the items requested is evidence that duties are performed mainly in the dedicated office space. What would be accepted as supporting evidence for this question?
Signed confirmation letter from the employer with their employer registration details, the employee’s details, information relating the duties that the employee will perform, the date when the employee was permitted to start working from home and if relevant the date such permission was withdrawn, and if available, the days that the employee did not report […]
FAQ: What happens if I never had an office at home but now I work from home since COVID? Can I still claim home office expenses? Will these expenses be considered?
You will not be eligible to claim home office expenses unless the relevant part of the home is regularly and exclusively used for the purposes of trade, in this case, employment. That part must also be specifically equipped for that purpose. Even if you worked mainly from home, if these requirements are not met, no […]
FAQ: How will the use of one’s home office for 1 or 2 years impact the CGT calculation on disposal of that property?
When a part of your home is used as a home office, that part is considered to “taint” the primary residence exclusion for CGT purposes. Upon the sale of the home, the overall capital gain or loss will need to be apportioned between the tainted and untainted elements. This apportionment is done by taking into […]
FAQ: Will the use of home office equipped for work purposes be allowed as a deduction for employees that have due to the pandemic been working from their home offices? Bearing in mind that in a normal period they would have worked from their employer’s offices.
Yes, provided they meet the legal requirements. An additional requirement for employees is that they must spend more than 50% of their working time in the home office in a year of assessment. For employees who earn mainly commission, more than 50% of their working time must be spent outside of the employer’s premises.
FAQ: Do I qualify for this tax deduction if I have renovated a room in my home for the sole purpose of my office space (can I claim for the renovation)?
This will depend on whether the renovation constitutes a repair or an improvement. Repairs may qualify for a deduction if all the requirements are met, but improvements are not deductible. Further, expenditure and losses incurred prior to the commencement of trade would not be eligible for deduction as these are not permitted under the legislation […]
