Help with setting up home office (for Sars purpose), as tax deduction

[dbz0e]

Hi guys,

How do I go about allocating a portion of my house, dedicated to running small business, as a tax deduction from the income I am generating.

Not sure if this is put correctly, but if someone can assist, before my next provisional return in Aug.

I wanted to do this along time ago...

 

[DrJohnZoidberg]

I'm not entirely sure about the details but my tax guy just said I should take the percentage floor area of my study and divide that by the total rental amount. Maybe you should just get a tax guy

 

[leonb]

I'm not entirely sure about the details but my tax guy just said I should take the percentage floor area of my study and divide that by the total rental amount. Maybe you should just get a tax guy

Be careful if it is your primary residence. You will not get the full capital gains tax reduction if you deducted 'business use' tax.

 

[Cpt.Underpants]

DrJohnZoidberg is correct, allocate house expenses such as rentals, rate, utilities, insurance etc based on the percentage floor area you use for business purpose only, e.g. study

 

[dunkyd]

Simple % of floor area. Nothing complicated. Done it for 30 years.

 

[bigboy529]

And what about things like ADSL and electricity, can you also claim a portion of those?