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Do you work from home? Here's how CGT affects you...

by , 03 December 2013
Capital Gains Tax (CGT) is a tax you pay on the profits you make on the disposal (sale) of your assets. If you calculate your CGT liability incorrectly, you'll be liable for tax penalties, plus interest. Read on to find out how CGT affects you if you work from home.

The truth is, you can't escape CGT, even if you work from home.

Here's what's included in CGT if you work from home

The Practical Tax Loose Leaf Service explains that if you use a portion of your residence for business purposes, this portion won't form part of a primary residence. Any gains or losses made on this portion must be included for CGT purposes.

This means that if you claim expenses for your office or study at home, that portion of your property will be subject to CGT when you dispose of the property.

Remember, you can't escape CGT. In fact, if you try to escape it, SARS could easily find you guilty of tax evasion and smack you with a 200% penalty!

The onus is on you to declare all your gains and losses, to calculate your due taxes correctly and to pay SARS on time.

Knowing what's included in CGT if you work from home will help ensure you comply with tax law and avoid SARS penalties.

 

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