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Do you work from home? Then meet these 3 criteria to qualify for a home office deduction

by , 08 March 2016
Are you a salaried taxpayer who works from home? If so, then you can claim a home office deduction.

But don't get ahead of yourself! Because there come certain criteria that must be met before you can do so.

In other words, you must make sure that you qualify for a home office deduction before going ahead and claiming it in your tax return.

SARS regularly looks into these deductions, and if you do so without qualifying for it, then they'll hit you hard with penalties.

So if you're an employee or a person who holds authority within your company, you can claim a home office deduction if you meet the following 3 criteria...

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Criterion#1:

Your home is specifically set up for carrying out your job. And it's regularly used for that purpose.

Criterion#2:

Your income comes mainly from commission or other unfixed payments based on your work performance and your duties are mainly done away from an office provided to you by your employer.

Criterion#3:

You income isn't mainly in the form of commission, but you perform most of your duties in your home office.
 

NOTE: You must distinguish between private and business expenditure.

If an expense has a private as well as a business component, then you must divide it up proportionally based on the surface area of your office in relation to that of your entire home.

Once you've done this, only claim the business portion of the expense.
 

*To learn more, simply page over to chapter D 06 – Deductions - Section 23(m) in your Practical Tax Loose Leaf Service handbook.

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