Deduct home office expenses with split income streams and no IRP5

Posted 5 October 2015

I work from home - part time as a contractor for a US-based company, and part time for a South African private company of which I'm one of the shareholders / directors. I earn a regular monthly salary from the foreign corporation, but they don't issue an IRP5. I also bill my local company for my time, but irregularly, and often this income is put into a director's loan account rather than paid out in cash. The local company did not issue me an IRP5 for 2014. How do I declare my income in such a ...

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How to account for water and electricity received by tenants in NPO return?

Posted 1 October 2015

I am completing a tax return for a church (NPO). The church rents out a building and receives rent income. When the church gets the water and electricty account they pay it on behalf of the tenants and the tenants deposit the water and electricity amount into the churches bank account. How should I classify this deposit received for water and electricity?

SHOULD I BE EVEN PAYING TAXES?

Posted 28 September 2015

I lost my job 5 years ago, but I get part time work now and then. I have just filed for this year and average about R15k for the year. But am now being made to panic saying I earned too low and SARS will question this. But what are you supposed to do if that is what you got. I see that you mention we should only pay taxes when we earn a certain amount per year, however the part time work I do never gets me that high, BUT the company I do the work for is an NPO and stated they by law have to take 25% from me each time I earn from them. Yes, I claim it back, but what is the point if now you get questioned for earning too little as well? Should I be getting taxed at all?...

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SARS refunds and monetary gifts

Posted 24 September 2015

Do monetary gifts and my SARS tax refund count as income received?

What are the tax implications & obligations to SARS of a doner and donee when a Donation is made?

Posted 20 September 2015

If I donate R90 000 to my wife and R10 000 to my nephew, I have to submit and IT144 form. Is this in any way tax deductible, and what are the tax implications & responsibility to SARS on myself, my wife (say she earns R260k p/a) and nephew (under 18)?

Do donations to a Section 18A PBO count against the R100K pa amount that is exempt from donations Ta

Posted 20 September 2015

Do donations to a Section 18A PBO count against the R100K pa amount that is exempt from donations Tax?
eg: say I donate R50k to a section 18A PBO (assuming my salary is more than R500k so R50K is within the 10% allowed tax free) then does this reduce my allowance from R100k to R50k left pa for tax free donations to say a trust?

How long does it take to obtain a tax clearance certificate?

Posted 20 September 2015

I have requested property owned by my husband to be transferred into my name. However, I have capital invested in the property - and can cover the outstanding bond installment. My husband suggested that he donates property to me - our bookkeeper said it has huge tax implication. I checked this through your column - and told him the contrary. He has now replied that he is trying to get a tax clearance - how long should this take? It has been over 4 weeks?

Are assets donated to charities tax deductible and what is the process?

Posted 16 September 2015

Hi there. I am a photographer and I have been approached by a charity to donate one of my camera bodies to a student that they sponsor. Will I be able to claim back the current value of the camera body that I donate from tax? They are registered and will write a letter to confirm.

Do I declare a gift of R100,000

Posted 16 September 2015

The person I was working for in a personal capacity for 10 years as an assistant emigrated to the USA. She wants to give me a thank u parting gift of R100,000. I am a provisional tax payer and pay tax on the R10,000 she has been paying me monthly. Do I have to declare it on my tax?

How to legally handle an amount of R500,000 paid to parents for purchase of retirement home.

Posted 15 September 2015

My husband and I are over 75 and because of his health problems have sold our home and bought in a Retirement Estate with Frail care. Our son, has donated R500,000 towards the cost of the unit. He is not resident in S. A. So will not be liable for tax but we have been advised that, he can donate annually, an amount of R100,000 which in 5 years will cover the original amount. Is this correct? We do not pay income tax as our only income is through interest on investments and a small pension receiv...

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Tax implications of cash donation received

Posted 15 September 2015

Is donation received included in gross income?

Is donations tax not double taxing?

Posted 14 September 2015

Hi, I am not sure about donations tax, why do I need to pay tax on donations I make if I have already paid income tax on this money? The way I see it this is double taxing? do I understand this correctly?
I pay 40% tax on my income and now when I want to give someone more than R 100 000 for whatever reason I now have to pay an additional 20% of tax on that as well? do I understand this correctly?

Do I pay tax on a gift?

Posted 10 September 2015

If my mother wants to give me a gift of R 100 000. 00 cash to be transferred into my cheque account, do I need to declare this anywhere and will I pay tax on it?

I am a personal fitness trainer. Can I register for turnover tax.

Posted 8 September 2015

I am a personal fitness trainer. Can I register for turnover tax.

Tax payable or not on donations?

Posted 31 August 2015

Is there any tax payable for funds (a donation) coming from overseas from my Dad (non-resident) to me in SA?

Where to record a donation

Posted 30 August 2015

Who must record a donation of R100 000? The donor or donee and where on the tax form must it be reflected.

Are home office refurbishments tax deductible?

Posted 28 August 2015

I am a sole proprietor of a business and work from a study at home. If I refurbish my study (e. G. Put in fixed cupboards and shelving) with the express purpose of improving my business workspace, is the cost of the refurbishment tax deductible? If so, under what item do I place it? Similarly, if I buy items for my home office (e. G. Office chair), are those tax deductible?

What expenses can I deduct to calculate my taxable income

Updated 28 August 2015

Please enter your Taxable Income. This is your Gross Income minus the business-related expenses from business or rental income. Also subtract any contributions to a pension fund or retirement annuity fund, donations, depreciation and other travel allowance deduction and any exempt income. Does this mean petrol, stationery, ink rent etc.?

What should my take home be (PAYE and UIF)

Posted 26 August 2015

My Salary is R12500-00 excluding my travel allowance of R9000-00 which I get taxed 20% as 80% of the time I use my car for business. What should take home be? Please help!!!!

Provisional Tax Calculation

Posted 24 August 2015

how do i work out the estimated profits for provisional tax payment to be effected end of august?

Tax implications on unit trust for a new born child

Posted 17 August 2015

Hi Tim
What are the tax implications if I have a unit trust fund for my child. Do I need to disclose the interest and capital gain on sale in my tax return? Thank you

Donation. Is it taxable by the receiver?

Posted 6 August 2015

My Father who is a non-tax resident of South Africa would like to assist my wife and I with a donation of R500 000 to help us to buy a house. Please advise if I receive this donation if it is required that I declare it it on my tax return and if it is subject to any tax?

Taxation on gifts

Posted 31 July 2015

I received a referral gift on the sale of a property of R10000
I assume a gift under R10000 is tax free?

Investment and capital transfer

Posted 29 July 2015

I have recently got married to a UK national and he is wanting to transfer some funds for an investment in SA. He is going to transfer the funds into my current account which I will then transfer into a unit trust.

Firstly do I need to submit a donations form they have on the SARS website and if it exceeds the R100,000 will it be liable for tax?
Secondly the income from the investment will be paid monthly. If it exceeds the R23,080 annual exemption what is the rate on the excess? Is it still taxable even if it is below R70,000 per year? I have no remuneration just the investment income....

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Studies and Tithes Tax

Posted 21 July 2015

Is private studies to become a Pastor, whilst being in full time employ of an engineering firm, tax deductible? Is the tithes paid to my local church monthly, tax deductible, if so, what deduction code does this fall under?
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