Working from home?
If you worked from home for more than half of your total working hours or for more than 6 months during the tax year you can claim certain home office expenses against your taxable income.
These deductions are only allowed under certain specific conditions:
- Must have worked from home for 6 months or more.
- Letter from Employer confirming that you worked from home.
- Must have covered all costs on own account.
- You have an area of you home exclusively used and setup for work.
- Your “office” is equipped with relevant tools and equipment needed to do your work.
If you meet these requirements, then you can claim the following expenses (you will need to provide proof of the expenses claimed for):
- Rental or Interest on Bond
- Utilities such as Electricity and Water / Rates and Taxes
- Office Maintenance / Cleaning
- Home Insurance
- Computer / Electronics – purchases and repairs
- Internet and Cell phone
- Stationery and furniture purchases
- Security Fees
For the actual calculation you will need to calculate the total square meterage of the home office in relation to the total square meterage of the house and convert this to a percentage. Then you apply this percentage to the expenses to calculate the portion which will be deductible.
It is important to remember that claiming this home office tax deduction to reduce your taxable income, may increase the capital gains tax you will need to pay should you dispose of your home one day.
Would you prefer assistance with this? Or is your circumstances complex in this regard?
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Kindly note this article is intended for general information purposes only and does not constitute accounting, tax, nor regulatory related advice. Should you need advice, please contact one of our practitioners.