![]() A = the area in m² of the part specifically equipped and used regularly and exclusively for trade (namely, the qualifying home office).Should you qualify for a deduction in respect of home office expenses, the amount must be calculated on the following basis: A / B x total costs, where: What is the method of calculating home office expenses? SARS accepts that the correct apportionment method to calculate the proportion of expenditure attributable to a part of a premises occupied for purposes of trade, is apportionment based on floor area of the premises (square meters of area of home office versus total square meters of your home). There may be instances where a type of expenditure is not subject to this apportionment and is, for example, fully excluded or included (see further below). Generally, the expenditure relating to the rent of, the cost of repairs of and in connection with the premises, is determined on the basis of apportionment. The lists reflect only the types of expenditure that may typically be incurred in relation to maintaining a home office. Note that the two lists above do not reflect expenditure that is necessarily deductible. office equipment, furniture and fittings, and repairs thereto.general wear and tear on items used for trade purposes in the office.Other typical expenditure that may qualify for a separate deduction in respect of maintaining a home office, include: expenses in connection with the premises, which could include:.Typically, the types of home office expenditure referred to in section 23( b), are those that are closely linked to the premises, namely: What constitutes home office expenditure? To see if you qualify to claim home office expenses, click here. If more than 50% of your remuneration consists of commission or variable payments based on your work performance, more than 50% of those duties must be performed otherwise than in an office provided by your employer.It therefore means you must perform more than 50% of your duties in your home office or If your remuneration consists only of a salary and similar remuneration, your duties must be mainly performed in this part of the home.The home office must therefore be set up solely for the purposes of your trade and employment and is specifically equipped for that purpose. If the room is regularly and exclusively used for the purposes of your trade, e.g.Section 23( b) of the Income Tax Act states that a tax deduction for home office expenses will only be considered: What are the requirements for claiming home office expenses? See below for more information on section 23 ( b). If you are an employee who works from home and have set aside a room to be occupied for the purpose of “trade”, you may be allowed to deduct certain expenses incurred in maintaining a home office, which will be calculated on a pro-rata basis: Provided that you meet the requirements as set out in the Income Tax Act, section 11( a) read in conjunction with sections 23( b) and 23( m). ![]() When will I be able to claim home office expenses? The key questions asked during the webinar are published here.The presentation discussed during the webinar is also available here for viewing or downloading.If you have missed the live streaming, it’s now available to watch here.9 July 2021 – SARS hosted a webinar on ‘Home Office Tax Requirements’: ![]()
0 Comments
Leave a Reply. |