Home Office Tax Deductions South Africa

Therefore leigh ann s home office deduction for the tax year 10 x r120 000 r36 000 r36 000 r5 000 r19 700.

Home office tax deductions south africa. Working on a home purchased for r1 million goslett says that if the homeowner works from home and uses 20 of the property as a home office based on the square meterage calculation they will be entitled to a tax deduction based on the interest charged on the remaining outstanding bond amount. Home office tax deductions in south africa if you work from home you may be able to lower your tax liability by deducting home office expenses. References to sections are to sections of the act unless otherwise stated. Income tax act no.

Yes you may claim a deduction for the home office expenses you incurred as long as the study is used for business only then you can give sars a letter from your employer stating that they need you to work from home more than 50 of the time. Interest on mortgage keep a good record of the interest paid towards the home loan so these can be included in the home office calculations. The income tax act allows deductions for expenditure incur in the production of income however it still sets our specifically when such deductions. Unfortunately the principal payments cannot be claimed as these are viewed as capital items which is the same for ordinary financial loans for a business too.

Tax rates visit the covid 19 online resource and news portal at www sacoronavirus co za we are experiencing high call volumes and appreciate your patience during this time. And the south african revenue service sars does allow them to claim certain home office expenses and reduce their income tax liability says gerhard kotzé the managing director at realnet. Deductions of home office expensesincurred by persons in employment or personsholding an office. A growing number of people now work from home whether they started their own business do some freelance work on the side work remotely for an employer or.

Guide to home office tax deduction. 7 claimable home office expense costs 1. Based on the above leigh ann does qualify for a home office deduction. My earnings are a straight salary can i claim a home office deduction on my tax return.

28 issue 2 date. Sections 11 a 11 d 23 b and 23 m subject. The expenses deemed deductible by the south african revenue service sars are determined by how you re remunerated. The square meterage of her home office 20m2 in relation to her house 200m2 is 20 200 which is 10.

15 march 2011.