Wondering if you can get a tax deduction for your home office? Accounting expert Ketil Damlien explains how you can meet the requirements.
Produced by Schibsted Partnerstudio
In order to get a discount, it is not enough just that work from your home. Not even if you work from home almost all the time.
The tax authorities require that you have a separate room in your home. This should be used as a home office and only used in the course of business, says accounting expert Ketil Damlien Tripletex.
This means that the kitchen table, guest room, or other rooms that are often used for more than one desk do not qualify.
Below you can read more about the discounts that apply to you.
Discount for the home office
For most people with a home office, there are two deductions in particular that are important to know:
1. Standard Discount
If your home office meets the requirements, you can get a standard discount of 1,850 NOK.
– If you use less than half of the house yourself, you have Not Right to the standard deduction, Damelin explains.
He continues, saying that for those who are salaried and do not have their own business, deductions for home office costs are usually included in the automatic minimum deduction. According to Damelin, this means 46 percent of gross wage income, but a maximum of 106,750 NOK.
2. Deduction of actual costs
Instead of the standard deduction, you can claim a deduction for actual expenses related to the portion of the home used for business. Then the costs of the home office portion – not the entire home – must be documented.
Many entrepreneurs choose to do this, since the costs associated with a home office are often higher than the standard deduction of NOK 1,850, says Damelin.
Equipment and supplies deduction
In addition to discounts for costs, you may be entitled to discounts for purchasing or renting equipment and fixtures for a home office. This applies even if you do not have a separate room that is used as a home office.
– with Tripletex Annual Report You can get a simple, clear picture of the assets purchased for the home office, says Damlien.
– When you submit the annual statement, you can get a discount for those costs associated with setting up a home office, if the criteria are met, he adds.
A prerequisite for such a discount is that the equipment is used primarily in the course of business.
The main purpose of the equipment is evaluated on the basis of, among others:
● Equipment price.
● Convenience of use at work.
● Whether the device is located in a home office.
● Whether equipment can be moved from the home office to other rooms.
● How much do you work from home?
● Whether the home office is temporary or permanent.
Tripletex helps you ensure that these assets are depreciated this year, says Damlien.
What does the employer cover?
If you have borrowed a monitor and other equipment from your employer, this is tax-free, as long as it is used primarily in the course of business. The same is true if the business owner goes to buy equipment or you get your money back.
– Then you can just take a picture of the receipt using the Tripletex app and upload it as an attachment. Then he’ll be ready to get the manager’s approval, Damelin says.
If you receive money from your employer to purchase equipment, you will be taxed in the same way as your salary.
If the business covers costs such as the phone and the Internet, it is considered taxable income as the services can be used privately.
Tax liability for real estate sales
If you have received a home office deduction, this may affect your tax liability when you sell the home. If a portion of the home was used for business in more than one of the last two years, the corresponding portion of the gain from the sale of the home will be taxed.
If you want to sell your home tax-free, in other words, you must change usage from a home office to your home early enough to make up enough usage time.
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