How can I deduct my home office expenses from my tax return?

As someone working from home, I find myself often taking more than the necessary steps to make my home office as comfortable as I can since, well, it’s mine. Anyone who works from home who has an old office to compare it to will tell you that their personal space is usually kitted out much more than the cubicle they used to share with that one guy who never knew how to keep his stuff off their desk. Because we tend to spend our own hard earned money making our home offices as comfortable and suitable for productivity as possible (and yes, having a video game system set up in your office DOES hinder productivity), it sometimes feels like we might be getting the short end of the stick.

I know that many of us home office guys (and girls) often think “if my company can deduct ‘office expenses’ from their taxes, why can’t I?”, but many of us didn’t even know that this was possible. The thing about it is, however, that there are limitations on what you can and can’t apply to have deducted from your tax return, depending on the state of your home office, your reasons for working from home, the type of job you do, etc.

For instance, if you are employed by someone other than yourself, and that person/company allows you (and deems it suitable and convenient that you do in fact work from home) to work from home, you will be able to deduct your home office expenses (including rent - for the portion of your home dedicated to work -, equipment, repairs and utilities) from your taxes at the end of the year. Remember, you will need to calculate exactly how much space is used as an office. For instance, if your office takes up 20% of your home, then only 20% of the rent, utilities and other expenses will be tax deductible.

Another thing to note is that the amount of things you can subtract relies heavily on your remuneration structure. If more than 50% of your income is commission based, you will be able to deduct more than if your full remuneration comes in the form of a salary or wage. You can only deduct tax from your home office if that office is used EXCLUSIVELY for work, and having a home office must be your only option for work. Having a desk available at the company office but simply choosing not to go in does not qualify you for tax deductions in this regard (as much as I have tried to convince my boss that it still counts anyway!).

Driving around to see clients? Keep a detailed logbook so that you can claim from SARS and save some money to spend on your home office. Little LogBook can log all your trips for tax purposes electronically. Visit our website to acquire your Little LogBook

If you’re in doubt regarding how much you are able to deduct considering your own situation, try consulting an expert or tax consultant who will be able to give you a more in depth breakdown of what exactly can be done about it. But until then, don’t let anyone know that you also secretly use your office as a hiding spot to get out of doing the work your spouse asked you to do!