Share Forum - Discuss JSE shares and join the Investor Challenge

Quote from: scitrader on November 14, 2013, 09:06:58 pm

So long as you are REASONABLE and wherever you can legally save why not do it ! 

Your maid and gardener may not help you trade, but as a business owner operating from home, you are entitled to claim a % of the total home running expenses. 

Hi Scitrader.  Your totally correct in saying any "home office" expenses incurred in carrying on a trade MAY qualify as a deduction, and certainly if they are genuine and have been incurred in the production of business income, they can be deducted.

However are you aware that any portion of your home utilized for business purposes (I.e. The % referred to above) will then be excluded from the "primary residence" exclusion when you sell the property (and thus be subject to CGT)?

Generally I find that in many cases, taxpayers are too aggressive in attempting to claim home office expenses, without understanding the implications.  My all time favourate was a taxpayer wanting to claim a percentage of his estimated dog food expenditure - apparently it was a security cost.

would that be just for the costs associated directly with the buildings (interest/maintenance)?

What is a home study or home office?
Any area of your house (eg. a room or separate entrance or garage) which you use mainly to run your business.

Basic requirement:
An office at home must be specifically set up for a persons trade and used exclusively or regularly for that purpose

Example of home office relating to different trades:
- A self employed consultant will use part of his living room equipped with computer equipment
- Catering business who usually use the garage to store your table and chairs,
- Construction worker who have storage for their tools and an office set up at home for admin
- A person who run a food service (samoosa or koeksister maker) from home
- Photographer who uses part of his house for a studio
- A motor mechanic who uses his garage as his workshop
- Cabinet maker uses his garage or separate entrance mainly for his trade

Home office expenses:
1) House expense
-Rental paid for the house or
-Interest paid on the mortgage bond
-Repairs and maintenance to premises
-Water and Electricity
-Rates and taxes
-Cleaning cost (domestic worker)
-Security (Armed response)
-Insurance
-House phone

2) Office expense
-Wear and tear (use of you computer or any equipment needed for your trade)
-Other office equipment (chair, desk etc)
-Stationery
-Business calls from cell phone

Fgl has really been a upset/upbeat share that few have punted but turned the game on its head.

Patrick how are going to handle the Abl right issue. Can the holders take up their rights from their last deposit in december or will they just forfeit them and retain what they have

or be able to sell their rights?

Yeh. I know how you feel. Sickening to invest in healthy stuff. You must reprimand them. Shout at them. They will then go up. Reminds me to reprimand mine now.

PNC.    Are you in DOS mode again. Sleeping I think. You are embarrassing me in front of 300+ people here. What's wrong with you? Look at your pal CML that now has to carry you in my portfolio. Get off your butt and get going. Your bosses bought you more toys as in acquisitions and you not interested !!!
MTA.     Are your batteries flat? Your boss just bought you a R2.2B battery buddy and you got revved up for 2 days then lost interest. I already said here that you are the next CML and now you embarrass me like this. Put some spark in there and get your wheels rolling mate.
CML.  Thank you for doing so well. Talk some sense into your room mates and get them going. Then you must rest as you must be tired now. I don't mind if you have a rest my friend.

 

 

yip

sell date minus buy date must be > 3years, but if you emigrate, you could perhaps make an argument that you had to sell to liquidate your investments

Orca - it does make one wonder if one should come clear with SARS

I take it since 2009 they never discovered your mistakes and you came forward on your own accord? or did they pull the plug on you?

so I have some use in life sometimes :laugh:

don't let the ladies tell you otherwise