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 […]
FAQ: Would insurance excess on the ceiling repair and geyser be allowed? If the geyser is directly above the home office space.
Such an insurance excess on the ceiling repair would be a payment towards a repair, and may qualify for deduction if the requirements for claiming repairs are met. The portion of the expense relating to the geyser may, however, not be claimed as water is not a permitted home office expense.
FAQ: Can a salaried employee claim a deduction for home office expenses?
If a salaried employee meets the requirements prescribed by the law, they could qualify for a deduction of home office expenses.
FAQ: When claiming home office expenses what exactly does the employer need in the letter to SARS that confirms the employee’s work from home arrangement
The letter from the employer should contain the following: The letter should be on the letterhead of the employer with their registration details including the PAYE number. The letter should provide the employee details and specify the period (start and end dates) when the employee was allowed to work from home. The letter should, where […]
FAQ: I have a small house and due to the limited space, I use some of the area for working. Am I eligible to claim home office expenses?
The home office must be exclusively used for purposes of the trade. If you don’t have a separate room set aside for you home office, it will be very difficult to prove that the area claimed as being used for trade, is used exclusively for that purpose.
FAQ: If I have to pay for a dedicated Wi-Fi / internet link for my home office, would this be claimable?
Wi-Fi equipment that is owned by a taxpayer may qualify for a wear-and-tear allowance. Other Wi-Fi expenditure, for example monthly subscriptions and certain installation charges, are not permitted as a deduction for home office purposes.
FAQ: Where a taxpayer claims home office expenses and the house is in the name of the taxpayer’s spouse, would this impact the CGT calculation when the spouse sells the house?
Yes, home office expenses claimed by a taxpayer will have a CGT impact on the disposal of the property by the spouse. The taxpayer’s use of the property for business purposes will affect the spouse’s primary residence exclusion.
FAQ: If I only use a portion of my bedroom for your home office, am I eligible to claim for a home office?
The home office must be exclusively used for purposes of the trade. A taxpayer will find it very difficult to prove that a portion of his or her bedroom is used exclusively for purposes of trade, and thus would not qualify for a home office deduction.
