Tax benefits for working from home

Private Property South Africa
Professor Peter Surtees

There are tax benefits to working from home but they are limited. If you earn remuneration it’s very difficult indeed to claim any deductions for your home office expenses. If you earn mainly commission it’s a bit easier. If you are self employed you may claim all expenses directly connected with your business, including a proportionate share (usually based on floor area) of repairs, cleaning, wages, electricity, bond interest and so on. However, two elements militate against this:

(1) very often the tax benefit is too small in relation to the difficulty of the calculations and record keeping, especially since SARS is quite likely to require you to provide proof of your expenses, and this can be time consuming;

(2) you know that the first R1.5 million of any capital gain on disposal of your primary residence is excluded from the CGT calculation. Well, this exclusion is reduced in the same proportion, so your benefit is less.

In short, you can get tax benefits from working from home but they come with a couple of health warnings.

Looking to sell your home?
Advertise your property to millions of interested buyers by listing with Private Property now!
Find out more

Tagged In:

Working from Home


Found this content useful?

Get the best of Private Property's latest news and advice delivered straight to your inbox each week

Related Articles

The Benefits of Working from Home
How to make sure that you maintain your productivity when working from home.
Make working from home work for you
The benefits of running your business from your home are numerous. Just think of the lower petrol costs, extra time with your family and freedom to manage your own office hours, and you’ll soon be dragging a desk into your spare ...
Is it legal to work from home?
All formal towns are governed by a town planning scheme (also nowadays known as a land use management scheme) in terms of which each parcel of land or stand has a specific zoning or land use right ...