Deductions on rental income - what is allowed?
Posted 21 February 2014
When doing deductions from rental income, for tax purposes, please advise which of these are deductible:
1) Monthly service fee charged on the bond;
2) Special levies raised for: Water meters (each unit is to have its own water meter, as per municipality); carports (I doubt it, as this is of a capital nature, but please confirm); garden tools.
SARS wants me to submit supporting documents, but the document list is empty
Posted 20 February 2014
I think SARS owes me a refund because my ITA34 reflected a negative number and said "refund due to you". Anyway they are now giving me grief, disputing my refund and demanding I respond in 21 days by sending me a "Final Request to Revise Income Tax Return or Submit Relevant Material". However in this document they say: "In the event that you couldn't find an error, you also had the option of submitting to SARS copies of the following material in support of the declarations made in your income tax return:" This is followed by an empty document list. ...
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Is CGT payable as the plot was bought with the intention to build a house?
Posted 10 February 2014
I bought a plot 20 years ago with the intention to build a house. Due to financial constraints I did not build nor purchase any other property. I have now sold the plot and purchased a house in much cheaper area
Am I liable for CGT on the sale of the plot?
Proportionate share of cgt
Posted 9 February 2014
How do I calculate Capital Gains Tax where 3 people own the property (35.5%, 35.5% and 29%) but only the latter 2 of them have primary residence?
Which property is my primary residence in SARS' eyes?
Posted 7 February 2014
I have just found a flat that I would like to buy (I already own one flat).
I was wondering how SARS determines what your primary residence is if you have two properties? Apparently if you sell your primary residence, you have a capital gains break of R1mil, but what's to stop you moving into your second property just before selling and claiming that it is your primary residence?
I have learned that I need to take tax into account with every decision!
Capital gains tax on inheritance and selling of fixed property.
Posted 5 February 2014
If I inherited a holiday from my uncle who passed away in 2013, and I am selling the home in 2014, what will my personal tax implications be? The value of the home at date of inheritance was R820,000 and the selling price of the home will be R1,100,000.
Am I a tax resident if I own property in south Africa even after having left in 2006?
Posted 31 January 2014
I left South Africa in 2006 to work overseas and visited the SARS prior to leaving the country. I was told I do not need to do anything further regarding tax. I returned for a holiday in 2008 and also bought a property in 2008. I was also told that any earnings I transfer to my South African bank account will only be taxed if I earn interest of 100 000 rand per year. I want to know if I own property am a tax resident? do I need to pay tax?
the property I purchased is not rented.
Is rental income from my primary residence taxable?
Posted 24 January 2014
Occasionally I rent out the spare bedroom in my primary residence. I'm not running a guesthouse - it's just a way of making a tiny bit of extra income and meeting some interesting people. I don't often have people staying - maybe for a total of 30 days out of the year. Do I need to declare this as "rental income"? If so,
1. What expenses can I claim against this income?
2. Where do I put it on my return? I'm already using the section "Local business, trade and professional income" for ...
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How will proceeds of shares sold to protect capital from an unstable market be taxed?
Posted 23 January 2014
Over a period of several years I was given about 25000 of my company's shares as performance awards and options. Usually I had to wait 3 years before I could take delivery of them but when I retired in 2012 the last of them became available to me immediately and I took delivery by the end of May 2012, planning to keep them indefinitely for their dividend income. In December 2012 I was worried about the US fiscal cliff situation and decided to sell them and have since kept the proceeds in a Money...
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Capital gains tax on share portfolio?
Posted 16 January 2014
I have a stock market share portfolio. I have received a summary of capital gain for the 2013 tax year. Do I declare this gain even though the gain is still in my portfolio & not in my pocket? The amount is not shown on the IT3b as is the interest & dividends.
Is the primary residence exclusion applicable if property was lived in and rented out?
Posted 6 January 2014
I have a property that I have recently sold. I lived in it for 7 years and then rented it out for 3.5 years subsequently. Now that it has been sold, do I qualify for primary residence exclusion on any portion of the capital gain? Is it pro-rata for the years that it was my primary residence, or how would I apportion it?
Leasehold improvement - how is this taxed?
Posted 30 December 2013
Our company has to make improvements to our offices that we lease. I know we should account for these as leasehold improvements and amortize it over the lease period, but will this amortization be a tax deductible expense? (will the accounting and tax treatment be the same?) The total improvement will be less than R7 000 can I rather treat this as a "small items" deduction?
Resident abroad aiming to cash out shares/ unit trusts, do I need to register with SARS ?
Posted 30 December 2013
I am a dual citizen (SA & European). I am currently living abroad on my European passport and never formally emigrated from SA. As a result I still hold a bank account there, as well as unit trusts & shares. I left SA shortly after studying so never had a job there/ paid income tax/ registered with SARS. Although I still visit the country on occasion, I am no longer a resident there. I would like to consolidate all my SA assets (have it all in one place) so I would like to "cash out...
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Tax on Sale of Personal Website?
Posted 22 December 2013
I own a website that I started as a Hobby (showcasing information about various sports teams and tournaments). The novelty has since worn off and I now want to sell the website. I have never earned or attempted to earn revenue from the website. Would I have to pay tax on the sale price? If so, what type of tax would I have to pay? (I am currently below the age of 65 and unemployed).
The website was given to me as a gift quite a number of years ago. I have since purchased domain names ...
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What is the source code for share trading income (ie not capital gains)?
Posted 25 November 2013
In addition to my salary, I actively trade shares and cfds (a kind of derivative) and there is no doubt, in my case, that this activity is on revenue account and not capital. What source code should I use? I can not find an appropriate code in the SARS source code booklet.
Are proceeds from a pension fund transferred to another fund considered non-taxable income?
Posted 18 November 2013
I changed employers, shortly before the beginning of the current tax year. At the time I transferred my pension/provident contributions across to another investment future fund (as you are allowed to do legally) without benefiting or receiving any physical proceeds. I have subsequently received an IT3(a) from the previous pension fund for the lump sum amount which has been recorded on my current pending tax return. I would assume that this is considered as non-taxable income ?
Property tax deductions and CGT implications?
Posted 17 November 2013
If Property A was purchased in 2000 and used as primary residence up until 2012, then rented out for a year (due to work relocation to another province) and property then sold with a capital gain?
If property A above was re-bonded[currently settled], can the bond interest be deducted against its rental income or will bond finance interest on a 2nd property, to be used as primary residence, be allowed to be deducted against Property A's rental income?
Offset maintenance for Capital Gains Tax?
Posted 16 November 2013
Can one offset maintenance to property for CGT?
Is registering a second bond in order to reduce rental income tax legal?
Posted 7 November 2013
I own two properties. Property A is my primary residence, and is bonded for R700k. Property B is a rental property, is valued at R1m and is bonded for R500k. I make a rental profit from Property B after deducting the loan interest and all other deductible expenses, and thus pay tax on that net income. My idea is to register a second bond on Property B for an additional R500k, and transfer that money into the bond of Property A. The increased interest paid on the combined bonds of Property B woul...
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How do you calculate T-no of years after valuation date when using Time Apportionment Base formula f
Posted 1 November 2013
I would like to know which year do you start calculating "T" on time apportionment base formula in CGT?
CGT on unit trust sale?
Posted 31 October 2013
Do all types of unit trusts attract capital gains tax when units are sold for cash withdrawal? Is there a yearly tax concession limit on investments such as unit trusts which is not taxable?
Investment information to be added on the SARS form and capital gains on what I draw every month?
Posted 29 October 2013
Hi, I have and investment, local and foreign dividends, that I draw an amount off every month of R6 000, there is a capital gains on this. I do not own fixed assets of any sorts and do not have a job, so the R6 000 is what I live off. How does this work with the capital gains on the SARS form, surely there should be and exemption for this? Also, the SARS form only asks for foreign withheld tax on dividends and not the local withheld tax. In the exemption area under non taxable what net amount do...
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I sold shares, capital or revenue for tax purposes?
Posted 23 October 2013
The shares I sold were before the 3 year automatic capital period, does this make them revenue in nature?
section 8C tax losses?
Posted 18 October 2013
Hi what are section 8 c losses?
Penalties on undeclared offshore property?
Posted 10 October 2013
If an offshore property was transferred into your name in 2009 as a gift from an overseas family member, and you never declared it to SARS or SARB, what type of penalties do you face. What is the process to declare this now, forms, etc.
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