Tax claim for battery backup for home office

[jetlee]

Hi

Arb question, if I have a home office and am a consultant / contractor who makes a living remote working, can I claim for a battery backup due to the possibility of load shedding impacting my earnings ?

I already have a solar / agm setup at home which gives me a bunch of comfort and no load shedding to speak of, but am thinking of upgrading to lithium and being able to claim for them, will significantly change my target prices ... I have yet to discuss this with my tax practitioner, so this is mostly exploratory at this stage, to see if its a common thing or not done at all by others on this forum ?

Thx

 

[deweyzeph]

Hi

Arb question, if I have a home office and am a consultant / contractor who makes a living remote working, can I claim for a battery backup due to the possibility of load shedding impacting my earnings ?

I already have a solar / agm setup at home which gives me a bunch of comfort and no load shedding to speak of, but am thinking of upgrading to lithium and being able to claim for them, will significantly change my target prices ... I have yet to discuss this with my tax practitioner, so this is mostly exploratory at this stage, to see if its a common thing or not done at all by others on this forum ?

Thx

You sure can. Google "SARS Wear and Tear Allowances". There is generally a 5 year write-off period for solar/battery/inverter type setups, which means whatever you buy can be written off over 5 years.

 

[Snyper564]

You sure can. Google "SARS Wear and Tear Allowances". There is generally a 5 year write-off period for solar/battery/inverter type setups, which means whatever you buy can be written off over 5 years.

Link for you

https://www.sars.gov.za/wp-content/uploads/Legal/Notes/LAPD-IntR-IN-2012-47-Wear-And-Tear-Depreciation-Allowance.pdf

 

[jetlee]

Thanks so much, thats excellent

Cheers

 

[Snyper564]

Thanks so much, thats excellent

Cheers

make sure to keep receipt etc for sars and pay with your own account not spouse etc

 

[Snyper564]

Hi

Arb question, if I have a home office and am a consultant / contractor who makes a living remote working, can I claim for a battery backup due to the possibility of load shedding impacting my earnings ?

I already have a solar / agm setup at home which gives me a bunch of comfort and no load shedding to speak of, but am thinking of upgrading to lithium and being able to claim for them, will significantly change my target prices ... I have yet to discuss this with my tax practitioner, so this is mostly exploratory at this stage, to see if its a common thing or not done at all by others on this forum ?

Thx

if item is under R7k its written off in 1 tax year just something else to bear in mind.

 

[Arthur]

As an aside: I haven't checked if SARS BPR 311 has been updated, but back in 2018 SARS ruled that a PV SSEG could be fully depreciated in 12 months in the same year as commissioning. This applied to private companies (not private individuals), and covered panels, inverter, cabling, but not batteries.

Anyone know if this ruling has been extended past 2021?

 

[Koosvanwyk]

As an aside: I haven't checked if SARS BPR 311 has been updated, but back in 2018 SARS ruled that a PV SSEG could be fully depreciated in 12 months in the same year as commissioning. This applied to private companies (not private individuals), and covered panels, inverter, cabling, but not batteries.

Anyone know if this ruling has been extended past 2021?

Is the solar system connected to the DB that feeds the entire house and will the batteries be connected to this solar system.

If it is, you will have to use the apportionment method (the only apportionment method allowed by SARS is based on floor space, no other apportionment methods can be used). So if your office space is say 10% of your total home then you can claim 10% of the cost of the batteries as a section 11(e) deduction over x years.

If the batteries will be used exclusively for the home office, the might be able to claim 100% of the cost as a 11(e) deduction over x years.

If you sells the batteries there will be a recoupment of some of the amounts that you have claimed ito section 11(e)

 

[Snyper564]

As an aside: I haven't checked if SARS BPR 311 has been updated, but back in 2018 SARS ruled that a PV SSEG could be fully depreciated in 12 months in the same year as commissioning. This applied to private companies (not private individuals), and covered panels, inverter, cabling, but not batteries.

Anyone know if this ruling has been extended past 2021?

Im personally attempting Section 12B for my set up in my personal capacity.

Not aiming it at anything like work from home but my crypto/mining income going to be a fun year with SARS

https://www.thesait.org.za/news/269950/Powering-up-A-look-at-section-12B-allowance-for-renewable-energy-machinery.htm

 

[jetlee]

Is the solar system connected to the DB that feeds the entire house and will the batteries be connected to this solar system.

If it is, you will have to use the apportionment method (the only apportionment method allowed by SARS is based on floor space, no other apportionment methods can be used). So if your office space is say 10% of your total home then you can claim 10% of the cost of the batteries as a section 11(e) deduction over x years.

If the batteries will be used exclusively for the home office, the might be able to claim 100% of the cost as a 11(e) deduction over x years.

If you sells the batteries there will be a recoupment of some of the amounts that you have claimed ito section 11(e)

hmm .. I hadn't considered this .. thanks

 

[deweyzeph]

hmm .. I hadn't considered this .. thanks

What exactly is the nature of your consulting/contracting? I.e. have you setup a pty (ltd) company to operate through, or you do operate as a sole proprietor? I'm asking because in general SARS scrutinises expense claims from individuals and sole proprietors far more closely than those from private companies.

 

[wingnut771]

What exactly is the nature of your consulting/contracting? I.e. have you setup a pty (ltd) company to operate through, or you do operate as a sole proprietor? I'm asking because in general SARS scrutinises expense claims from individuals and sole proprietors far more closely than those from private companies.

What's the catch?

 

[RedViking]

I claim anything that is used in my office, including my inverter and batteries. Just remember anything above R7 000 (I think) needs to be wear and tear, usually over a 3-6 year period. If not only for my office, but partially used for my office, I claim a portion of it. Remember to keep receipts and proof of purchases on whatever you claim.

 

[Snyper564]

What's the catch?

You don't need to set up a pty Ltd you can do everything in your personal capacity.

 

[RedViking]

I'm asking because in general SARS scrutinises expense claims from individuals and sole proprietors far more closely than those from private companies.

If you keep proof of everything you claim, and you show in an excel sheet your calculations and refer to your bank statements, this shouldn't be a big problem. Have been doing it for a decade.

When ever they ask for information, I just send them an excel sheet and they accept it.

 

[Snyper564]

If you keep proof of everything you claim, and you show in an excel sheet your calculations and refer to your bank statements, this shouldn't be a big problem. Have been doing it for a decade.

When ever they ask for information, I just send them an excel sheet and they accept it.

This