Weekend Argus (Saturday Edition)
Tax claim possible for home offices
THE 2020 tax filing season is here and homeowners are entitled to make certain claims if they are working from home, says Adrian Goslett, chief executive of Re/Max of Southern Africa.
This is a simplified overview of what you could potentially claim back.
If you work from a R1 million home (purchase price) and use 20% of the property as a home office you will be entitled to a tax-deduction based on the interest charged on the remaining outstanding bond amount. If the interest on the bond is charged at 7%, you will be charged roughly R70 000 in interest for the year. Because 20% of the property is used as a home office, you would be entitled to claim 20% of the R70 000 (R14 000) as a tax deduction.
But there are other considerations to take into account such as whether you have withdrawn an amount from your bond to fund personal expenses or if you have made a substantial payment on the bond. Consult a tax consultant if in doubt.