It has long been Revenue practice to include mortgage interest when calculating a claim for home office expenses. As a result, you may claim the interest on your mortgage bond for the period ending on February 28, 2022, that is, up to the end of the 2022 assessment year. The incurred interest must be allocated in accordance with standard apportionment procedures. Section 23(m) only allows workers to claim home office deductions allowed by sections 11(a) and 11. (d). Interest on a mortgage bond is an item that may be claimed under section 24J and so cannot be claimed under section 23. (m).
As a result, mortgage interest will be ineligible in the computation of a claim for home office expense beginning on 1 March 2022, that is, beginning with the 2023 tax year.
Is mortgage interest tax deductible in South Africa?
Interest is deductible in South Africa under the Revenue Tax Act, 1962 (the “Act”) whether or not it is capital in nature, as long as it is incurred “in the creation of income” and as part of a “trade.”
Is mortgage loan interest considered an expense?
Interest on a mortgage bond is an expenditure that can be claimed under section 24J and hence cannot be claimed.
