08 Jul Tax Season 2021
Home Office Expenses
The deductibility of expenses relating to a home office is determined by reference to section 11, read with section 23 of the Income Tax Act 58 of 1962. Section 11 provides examples of expenses which may qualify for deduction, while section 23 prohibits certain deductions. The burden of proving that an amount is deductible as a home office expense lies with the taxpayer.
- Rent paid
- Repairs and maintenance
- Interest paid on a mortgage bond
- Municipal charges such as rates and taxes, electricity and sewerage
- Levies paid
- Cleaning costs
- The workspace is a dedicated workspace, specifically equipped for the purpose of employment and is regularly and exclusively used by the taxpayer for work purposes.
- Their duties are performed more than 50% of the time at the home office
2.1 This burden of proof will only lie with taxpayers who do not earn more than 50% commission-based income.