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The Tax Act also provides a R2 million ' primary residence exclusion ' for those taxpayers who sell their primary residence . This means that the first R2 million of your capital gain is exempt from tax .
Please note that Capital Gains Tax does not apply when you sell personal use assets . So , you do not need to declare the details of your recent car sale or sold TV in your tax return .
Which expenses can be deducted Here are a few of the major expenses you can claim as deductions .
3 . Home office expenses
When claiming expenses for your home office in your primary residence , your Accountant will calculate the area based on the following formula :
A = the area in m2 of the part specifically equipped and used exclusively for business B = the total size of the residence in m2 Total costs = the costs incurred that are linked closely to the premises ( such as rent , rates and taxes , repairs , and electricity ), excluding expenses of a capital nature .
In such a case , SARS may request the following :
• Floorplan of your residence
• Pictures of your office space
• Depreciation schedule ( if applicable ) Internet and telephone invoices
• Rental on property / s registered in your personal name
There are many examples of a SARS logbook online , but if you want more information , don ' t hesitate to contact your Destinata Accountant for a template .
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Anneline Lamond Managing Director Distinata Accounting
SA Real Estate Investor Magazine MARCH / APRIL 2023 43