How to declare other income, if when combined with interest income is still below the threshhold

Posted 19 November 2015

I resigned my job to study. I have an income on an investment of - R7000 pa and I did some adhoc consulting for a company for which I earned R30000. My wife's tax adviser told me that I still need to submit a tax return as I have income from two different sources. He also said that I don't need to register as a provisional tax payer as I am not actively generating an income that will exceed the tax threshold. (I understand that should I consistently do more freelance work and if my income increases that in future I may have to register as a provisional tax payer. )...

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Allocation of rental income on jointly registered bond.

Posted 18 November 2015

My partner and I rent out the garden cottage of our primary residence, the bond of which is jointly registered in both our names. We are not married. The rental is paid into her account, but I pay for most of the expenses from my account... The bond on the property etc. How should the rental income be declared - hers since it is paid into her account, or jointly (50%-50%) since the asset is in both our names and we otherwise share household expenses?

Multiple rental properties

Posted 18 November 2015

I have multiple rental properties. Do I add all the income and expenses together? On the SARS form, it was always specified separately

Capital Gains Tax of a property that was 5 years primary residence and then 6 years Rented out?

Posted 17 November 2015

I have a second property that was my primary residence for 5 years (bought for R200k) and then rented it out for another 6 years. Not I sold it (R500k). Do I pay Capital Gains Tax for the entire 11 years (R300k) or can I pro-rata the Taxable Capital Gains as (6/11 x R300K = R163. 6k).

How will the last year tax returns affect the new year if its not paid?

Posted 17 November 2015

If I have an outstanding amount to pay, will it affect the new year tax returns?

Source codes 4201 & 4250

Posted 16 November 2015

Which section do you enter income source code 4201 & 4250? I have investments at RSA Retails Bonds and Satrix. I didn't see anywhere to enter it.

Sale of property - sale resolution

Posted 16 November 2015

My property was sold in November 2014, but the proceeds only entered my account in March (if I remember correctly). Do I then need to note it on my 2015 tax return?

Is it better to buy or lease a vehicle for a commission earner?

Posted 16 November 2015

I am a real estate agent and require a vehicle to travel to appointments, etc. Would it be better to buy a vehicle (new or used) or lease a vehicle? My understanding is there are greater tax benefits in leasing (claim 100%) while buying a vehicle there is only a portion of the vehicle and interest you can claim. Is this correct? Which would you recommend?

Primary residence that is jointly owned by my wife and I considered a partnership agreement?

Posted 15 November 2015

My wife and I sold our primary residence this year. The property was on both our names. One of the questions on the tax return is:

"Was the joint ownership described in a contractual partnership agreement?"

Does this apply?

Stipend and Capital Gains Tax for student studying abroad

Posted 13 November 2015

I am a South African citizen who used to work in SA (tax registered), but have been studying full time in the UK since February 2015, being paid a monthly stipend of 1150 pounds by my financial sponsor (It sounds like a lot if converted to Rand, but it is barely enough). Do I have to pay tax on this income in South Africa?

I am about to sell a property in South Africa which I inherited from my Dad and the Taxable Capital Gain ((Proceeds - Base Cost - Annual Exclusion)*33.3%) will be r...

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Part-time home studies tax rebate for bond/rental?

Posted 12 November 2015

Which section of the Income Tax Act allows one to claim a deduction for bonds/rent if one is studying part-time from home?

Supporting documents for capital gains

Posted 12 November 2015

I just got notified that you submitted a revised ITR12 which records the primary residence exclusion of R2000 000. The new ITA34 I received now reflects an amount of -R14 290. 15. But now I am being audited. They are not clear on the documents that I have to submit. They ask for my IRP5, medical aid certificate, IT3B tax certificate. With regards to the capital gains part, there are no specific requests. Should I submit the final statement of accounts for the purchase and sale of my former resid...

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How do I account for various line items in IT3b Discovery investment certificate?

Posted 11 November 2015

I receive two tax certificates from Discovery for the same investment product. One is an IT3b, the other an IT3c. While the IT3c shows a source code of 4250, the IT3b does not show source codes. It shows "Gross foreign dividends", "Local interest voluntary", "Gross foreign interest" & "Local dividends (exempt)". It also shows withholding tax on 3 of them, and a "Net total".

When declaring my local interest earned, should I add just the "Local interest voluntary" amount from Discovery...

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Tax and handling donation from non SA resident

Posted 9 November 2015

Dear Tim,
Are there any taxes due in South Africa, if my daughter (non SA resident, living in Australia and having Australian passport) donates money (more than ZAR100K) to her parents, and we do not transfer the money to SA and keep them within a bank outside SA (UK or other place) and in different currency?
1. Do we have to declare such a donation on our tax returns and what are the tax complications here?
2. Do we have to declare this account/amount every year in our tax returns and pay some taxes like capital gain tax as a result of Rand depreciation?...

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Refuse and water costs included in rates, taxes and levies for business

Posted 9 November 2015

In the TaxTim system in the Business Income and Property Rental section I am asked to enter "electricity or rates/taxes/levies". Does this include refuse removal and water? Basically is this the total from my council bill, apportioned for business obviously?

2nd property

Posted 8 November 2015

I have a 2nd property. Thats not my primary residence. We want to sell it. For R500 000. Bought it for R80 000. Owi g R200 000. What portion will go to tax. Do we pay tax on the resale value or the profit value. Thanks

Rental costs whilst unit is empty before next tenants

Posted 8 November 2015

Let's say people rented a property and they left end of June and you sold the property with transfer going through September and it's not your primary residence. Would you account for the costs of levy etc between July Aug and Sep as part of the rental income deductions section?
The property was for rental specifically.

Capital gains tax exemption

Posted 6 November 2015

I have to calculate capital gain on a rental property ( not a primary residence). It seems we can deduct a R30 000 natural person exemption. Does SARS eFiling automatically take off that R30 000 or am I supposed to put it in somewhere?

Rental income In Community of Property split not recorded on IT34

Posted 5 November 2015

On my IT34 - for my rental income profit - SARS did not perform the 50-50 split for being married in community of property and so the full amount was used to calculate my tax owed. Would I file a dispute claim for this? It seems strange that last year SARS did the 50-50 split and this year they haven't.

Is a UK property sale liable for SA CGT

Posted 5 November 2015

I've recently sold a property in the United Kingdom, and transferred the proceeds thereof over to South Africa. I'm a South African citizen, registered with SARS. Am I liable to pay capital gains tax here in SA?

Reclaim attorney costs

Posted 4 November 2015

Good day
I want to find out, I've bought a flat and it was registered in March 2015 on my name. Can I reclaim the attorney fees and where I complete it on the tax form, in other words, costs of Duty, transport costs, registration of deed
Thanks

Duplicate expenditure for both employment and freelance monies earned

Posted 4 November 2015

I am permanently employed and work from home. I also have a freelance business that I run after business hours, using the same equipment (laptop, printer, office furniture) and space that I use working for my permanent employer. I have noticed that under the "Tax Deductions" and "Business and Rental Income" sections that there are duplicate questions regarding depreciation, travel costs, lease and electricity expenditure used during earning my monies. Do I complete both sections with the same in...

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Where do I declare the bond amount on rental income?

Posted 4 November 2015

I'm stuck in the section where I declare the rental income for a house I was renting out. I don't see where I put total I spent on the bond to justify that it was a loss against the rental income and the expenses incurred. Where do I do that?

What examples of income which falls under IRP5 code 3602

Posted 4 November 2015

Examples of income of a that can be classified under IRP5 code 3602

Where does the IT/IB 3(c) &(b) forms go on tax return?

Posted 3 November 2015

I have 2 satrix investment plans, how and where do I input the IT3(c) and IT3(B) Income Tax forms received from Satrix?
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