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?

What value to use in wear and tear calculation - vehicle

Posted 1 October 2015

What to include in the price when calculating wear and tear on a company vehicle? Service plan, window break-in protection, VAT, Finance initiation charge, interest?

63 old, interest income R13500/mon and will contribute R2640/m towards medical.Tax payable?

Posted 30 September 2015

Hi,
I'm 63 and retirinmg with an interest based income of R13500. 00 /month. I'm contributing R2640 towards medical aid. How much SARS tax will I be liable for. Thank you

Car Deductions on Commission

Posted 29 September 2015

Hi Tim, I am a Commission earner and I claim back on my vehicle usage on depreciation and logbook. When I claim back on my car usage, I keep a logbook as well. But my question is, can I claim back on a paid up vehicle? or do I have to still be paying monthly towards finance. Does the finance amount help with increase my tax return from SARS. Eg if im paying R2500 or R2000. Which will yield a higher tax return?

VAT on new vehicle for commission earner

Posted 29 September 2015

As a Commission earner and using my vehicle for business purposes. Can I claim the VAT back on purchasing a new vehicle?
also what can I claim on the interest portion?

NO refund yet

Posted 28 September 2015

Good Day

I recently submitted my tax return and have a refund due to me. I emailed SARS and asked how come I have received my refund and they say that I have not submitted my 2011 tax return. I only worked for 4 months in that tax year and earned way below the threshold. Also in previous years they have refunded me without asking me to submit the 2011 tax return. What I would like to know and am afraid of is, if I submit the 2011 tax return now will I not incur penalties and interest?

Married couples and CGT on sale of primary residence

Posted 28 September 2015

If a couple is married in community of property, does the Capital gain on the sale of their primary residence get split between the two on their tax returns (if the CGT profit is over R2 mil)?
i.e, do they each pay 50 % tax on the profit?

Request for Supporting Documents but I have not been employed for 3 years

Posted 27 September 2015

SARS is asking for supporting documents related to my tax return but I have been unemployed and living abroad for three years! I don't have any of the documents they are requesting. I still pay provisional tax and submit that tax return dutifully. I read that I must swear an affidavit at a police station but I am currently not in the country and won't be back for several months - they need these supporting documents in 21 days. What must I do? (I did email them, asking them what to do, but they ...

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Money not deposited

Posted 23 September 2015

I make my returns 2wks back and now if I check my efiling account there is -R20 323 reflecting on my statement account the problem I dont know what makes my money not deposited, and in status it says (waiting for supporting documents )what does that mean

Do I qualify to give an it3 certificate to an shaare holder?

Posted 22 September 2015

I started a small company with a friend a year ago, she recently needed money and although our company is not profitable yet I offered to buy her out at double her original investment. I paid her in cash. She is requesting a IT3 tax certificate for the money I paid her, how do I do this?

Home Office property business expense calculations?

Posted 22 September 2015

We run a small hair salon from home for my wife, she does business as a sole-proprietor and the salon is her sole income source. I understand that we can deduct for ease of explanation 10% (amount of space occupied by the salon in relation to the whole property) from all rates and taxes, electricity etc. I am unsure about the interest/rent piece. Can the salon pay "rent" or can you just subtract 10% of the interest on the bond as business expense (bond is in my name). I've also read that deducting this piece as a business expense now can influence your Capital Gains Tax waiver amount when selling the property later on, is this the case?...

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Rental income into another individual bank account

Posted 21 September 2015

Do I have to declare rental income if the property is in my name but the rental income goes to another family members bank account?

Percentage of tax on rental profit

Posted 21 September 2015

What is the percentage of tax on rental profit of R58000

Can I claim a lump sum financial lease installment settlement as a deduction for tax purposes.

Posted 21 September 2015

If I am currently paying a finance lease for a vehicle and then subsequently decide to request a settlement figure from the bank and pay the remainder of the finance debt off to the bank can I claim the lump sum settlement as a deduction for tax purposes?

Calculation of Transfer duty as a deemed VAT input

Posted 20 September 2015

How am I supposed to calculate the VAT input claim on a fixed property bought for R850 000?

The purchaser paid R3000 transfer duty to the seller. According to the articles I read online, the purchaser may claim the transfer duty as a VAT input. But now I'm confused as to what exactly the amount should be. May he claim R104 385.96 (R850 000 x 14/114) AND R3000 as a VAT input, or only R3000 as a input?

Could you tell me what Withholding Tax Status means and how do I tell if I am exempt or not?

Posted 20 September 2015

Hi there,

I'm planning on investing in exchange traded funds, and on the application form a field requires me to mention my Withholding Tax Status (exempt or not exempt). Could you tell me what this means and how do I tell if I am exempt or not?

Regards
Jarryd

Do you deduct the interest exemption plus tax threshold from interest income to get the total income

Posted 20 September 2015

Only income earned is investment income thus interest on savings in bank account. Do you deduct the interest exemption of R23800 plus R70700 from the total to establish income e. G R96000 interest income - R23800 - R70700 = R1500 multiply by 18 % taxes due R270

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?

What exchange rate to use on foreign dividend inclusion

Posted 15 September 2015

When calculating the Rand value of foreign dividends to be included into taxable income under s1, what exchange rate must be used if the dividends accrued over a period of a year? If I received 83.69 pounds over the year of assessment, is the amount converted to Rands at the average exchange rate over the year or at the exchange rate present on the 28th of February? The Act doesn't provide any clarity on this.

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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When and why must I do efiling?

Posted 14 September 2015

My employer does deduct monthly tax from my salary. My income is not more than R250000 a year. I have no other income that I earned or interest rates or dividends I earned. Do I still have to do SARS eFiling? Thank you

What source codes are used for Investment Income interest?

Posted 14 September 2015

What source codes do I use on my tax return for Investment Income as listed in my first submission?

How does "Interest on underpayment of prov tax" work?

Posted 8 September 2015

I've done my 2012 tax return only now and I see the original assessment is R14,693.15. Now another item that is listed is:

Interest on underpayment of prov tax. Section 89quat(2) 2012 to the amount of R3,884.46.

I just want to know is that value correct, and how is that calculated. I guess it is that "high" because of this part in that section?:

"... Such interest being calculated from the effective date in relation to the said year until the date of assessment of such normal tax. "...

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Tax treatment of income of spouses

Posted 7 September 2015

What is the tax implication for someone who is married in community of property, especially on passive income like interest and dividend?

Collect rental income from property I own must I complete statement of assets and liabilities sectio

Posted 4 September 2015

I own a property which I rent out and collect rental income. Do I have to complete the statement of assets and liabilities?
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