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If your new office furniture costs less than R7 000, SARS may give it to you for free

by , 14 July 2014
Your office looks great! All your new furniture really gives it a professional look your clients are going to love. But we all know, the professional look doesn't come cheap!

In fact, your office upgrade has set you back quite a bit. So now you're praying you'll get in enough new business to cover the expense.

But before the bill makes you break out in a cold sweat, ask yourself, did each piece of new furniture cost less than R7 000?

If it did, SARS may give it to you for free...

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No, SARS won't pay for your furniture but they may give you a wear and tear allowance

 
I think we all love the image of a cheque arriving from SARS and a note that says 'We hope you enjoy your new office furniture, it's all paid for!' complete with a smiley face.
 
But sadly, no, SARS isn't posting any cheques for furniture. But because of the magic wear and tear allowance, they may as well do.
 
You see, all that new furniture starts to depreciate in value from the day you buy it. But don't panic, this is a good thing.
 
With big assets you have to calculate depreciation and write it off a bit each year. But if the assets cost less than R7 000, you can get your money back much faster.
 

You can use asset depreciation to write off assets worth less than R7 000 in the same year

 
You can write off the value of any asset that costs less than R7 000 in the same year. So let's say those new desks cost R2 499 each and the chairs were R750 each. 
 
That means you can claim that FULL COST of those assets back in the same year.
 
So don't panic over the cost of your office revamp. Just claim the asset depreciation of each one back at the end of the tax year. 
 
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