Hi,

I work for a pretoria based company in the western cape. My company has no office in WC and as such I work from Home. It is my understanding that a portion of the rent qualifies as a deduction from gross income because:

i) a portion of the flat is equipped solely for the purpose of my trade from which I derive my income;
ii) I receive no allowance from my employer for this portion of the flat.

I've briefly been through the "allowable deduction" section of the income tax act and the only relevant section I can find is par 23 (1), namely,

1) No deductions shall in any case be made in respect of the following matters, namely--

a) the cost incurred in the maintenance of any taxpayer, his family or establishment;
b) domestic or private expenses, including the rent of or cost of repairs of or expenses in connection with any premises not occupied for the purposes of trade or of any dwelling-house or domestic premises except in respect of such part as may be occupied for the purposes of trade: Provided that--

a) such part shall not be deemed to have been occupied for the purposes of trade, unless such part is specifically equipped for purposes of the taxpayer's trade and regularly and exclusively used for such purposes; and
b) no deduction shall in any event be granted where the taxpayer's trade constitutes any employment or office unless--

i) his income from such employment or office is derived mainly from commission or other variable payments which are based on the taxpayer's work performance and his duties are mainly performed otherwise than in an office which is provided to him by his employer; or
ii) his duties are mainly performed in such part.

Help pse!