What percentage of electricity can I claim when working from home?

  Written by Marc   Posted 24 August 2014

As a freelancer working from home I realize I can claim certain expenses such as electricity. I have seen several sources indicate that I can claim a percentage based on the size of my home office in relation to my entire home, is that the rule?

My work space is maybe 10% of my home but I can confidently say that at least 30% of my electricity expenses is due to the various electronic equipment running 24/7 in that area. How much can I claim, 10% or 30%?

2015 Provisional Tax figures please?

  Written by Marc   Posted 18 August 2014

1. Tax tables for 20152. Tax Rebates - Primary & Secondary3. Tax Thresholds for over 654. Exempt portion on investment interest - over 65

Can attorney's fees be deducted against rental income?

  Written by Marc   Posted 16 August 2014

I bought an investment property in the 2014 tax year, which I currently rent out.
In the process of buying the property I paid the transfer attorney fees of R10 620 and the bond attorney R12 963.
Am I allowed to include these amounts in my ITR12 tax return as Local Business Expenditure under Legal Fees or some other category?

Tax Free Unit Trust Investments?

  Written by Marc   Posted 15 August 2014

Is there any other tax saving unit trust that one can invest in other than an RA or Pension fund. I heard there is a R 30 000 pa allowance if you invest in the right unit trust (or is this from 2016?)

Do provisional tax payers that have PAYE deducted and paid over monthly have to submit 1/2 year retu

  Written by Marc   Posted 15 August 2014

If I am a provisional tax payer and my company pays my PAYE over to SARS on a monthly basis, do I have to fill in the half return. Can I not just state that PAYE is deducted and paid over monthly. I earn dividends and some interest over and above my monthly salary.

Shoud I (non South African) pay tax on my global income which comes to my non resident account?

  Written by Marc   Posted 12 August 2014

I am a foreigner working overseas. My spouse, also a foreigner, lives in South Africa on a work permit and pays taxes here. When I am not doing my consultancies, I come to South Africa to stay with my spouse. I have recently opened a non resident account in South Africa so that my consultants fees can be paid to the account here and it will help me with liquidity as well as eventual investments that I may want to make. What is my tax liability in South Africa?

Do I need to submit tax return for rental income (only income apart from maintenance) of R80 000?

  Written by Marc   Posted 10 August 2014

I am divorced, not employed and receive monthly maintenance - which is tax free as far as I know? Only other income from rental (annual total for 2014: R80 000). Do I need to submit a tax return?

What is a reasonable market related interest rate to use on a loan to a family trust?

  Written by Marc   Posted 8 August 2014

Hi Tim, what is regarded as a reasonable interest rate on a loan made by a trustee to a family (discretionary) trust in order to avoid a "Deemed donation" being made in the form of no/too low interest? I would argue that it would be an "opportunity cost" rate - for example a FNB money market rate.

RENT TAX..INDIVIDUALS on my ITR12?

  Written by Marc   Posted 7 August 2014

DEAR TAX TIM...I HAVE A PRINCIPAL RESIDENCE IN ONE PART OF THE CITY BUT OWING TO A JOB TRANSFER I AM FORCED TO RENT OUT THIS PROPERTY AND TAKE A LEASE ON A PROPERTY CLOSER TO WHERE I WORK.

Q. CAN I OFFSET THE RENT INCOME RECEIVED FROM MY PRINCIPAL RESIDENT HOUSE WITH THE RENT PAID TO THE HOUSE I NOW HAVE TO RENT..IT SEEMS UNFAIR IF SARS CHARGE TAX ON RENT INCOME IF THEY DISSALOW RENT EXPENTITURE.

Can improvement be expensed if they are done specifically for an increased rental?

  Written by Marc   Posted 6 August 2014

I own an investment property. The rental agent has advised me that in I can increase my monthly rental markedly by doing various improvements. Can this be construed then as expenses in the production of income, or must the improvements be capitalized? Ideally I would want to expense at least a portion of the improvements.

Is there any refund due to me for 2012 and 2014?

  Written by Marc   Posted 5 August 2014

On 2012 I did my eFiling and my return was R-1478.05 this year 2014 I received Notice issued on SARS for ITA34 for 2012/1
Thank you for submitting your income tax return for the 2012 year of assessment.Your assessment has been concluded and reflects an amount refundable to you of R-1478.05
please note that this amount only reflects your income tax assessment and does not reflect tax payable under any previous assessment or any othre balances on your account.The current balance on your ...

Read more →

Owning a second property with no real rental income and the implications on tax

  Written by Marc   Posted 4 August 2014

I own a second property which is an apartment in a small block of flats. My in-laws are the tenants so I don't charge rent. However, they do pay the monthly levies for the apartment.
Since I don't charge rent, would the monthly levies that they pay be seen as an income to me from the apartment? (As the owner of the property, I would normally have to pay this). Expenses that I incur on the property are rates & taxes, bond interest and insurance. These expenses exceed the monthly levies....

Read more →

What documents are needed for submission of my ITR12 Tax Return?

  Written by Marc   Posted 3 August 2014

What is IT3b? And what other documents are needed from me so that I can submit my returns?

When do you submit a return on a fiver year fixed deposit, interest paid at maturity?

  Written by Marc   Posted 29 July 2014

when do you submit a return on a fiver year fixed deposit, interest paid at maturity?

Can I claim deductions for items bought in Feb to start with sole proprietor business in March

  Written by Marc   Posted 29 July 2014

I started a sole proprietor hairdressing business on 01 March, I started to purchase stock and had some upgrades done to a rental property during Feb. Can I claim a deduction for the chairs and sinks, I purchased as well as the repairs to the deck. I am renting a small property because my home is not large enough for the business

Will you be fined if you've never paid tax but start paying.

  Written by Marc   Posted 28 July 2014

If somebody has a small business and has not previously paid tax, if they now register for tax will they be fined or charged previous years?

What is income tax IT3(b)

  Written by Marc   Posted 28 July 2014

What is income tax IT3(b)

Tax refund from SARS?

  Written by Marc   Posted 26 July 2014

If I buy a property worth R400 000 cash, can I claim tax refund when I submit my IRP5 and how much will I get back as a refund?

Refund/no refund or less refund for previous years returns.

  Written by Marc   Posted 25 July 2014

Hi TimThank you very much for the awesome job you are doing.I would like to know;what happens when someone hasn't submitted to SARS for about 5-7yrs? *Incorrect submission or not submitting at all*.Does the person get the refunds of other years when he/she eventually submits or get penalties that leads to no refund at all or less refund? Regards,LMM

CGT Calculation for non resident?

  Written by Marc   Posted 25 July 2014

CGT
I inherited shares in a 3 private companies at a total value of R650,000.00 in 2003.
I intend selling all the shares at a total price of R2,500,000.00.
I would thus make a capital profit of R1,850,000.00
I am a non resident of South Africa and a citizen of and tax resident of Australia.
I pay taxes in South Africa on dividend and interest at a tax rate of 18%.
What would my CGT liability be.

Tax responsibilities following resignation?

  Written by Marc   Posted 23 July 2014

I would like to find out how my SARS tax returns will work for the 2015 tax year.

I resigned from my employer of 10 years at the end of January 2014 to start my own business from home.

What are the implications and my responsibilities to SARS from this point on? I am technically unemployed with low annual income currently.

My business is home-based. I have no other means of income. My husband is currently employed full time. We are married in community of proper...

Read more →

Nedbank IT3(b) on my ITR12?

  Written by Marc   Posted 23 July 2014

Hi, Nedbank has posted me my IT3(b) Form and I see it has changed from last year, they now have an amount under 'Net Amount Accrued' which is added to the 'Net Amount Paid' to give total 'Interest' earned. My question is : What amount do I have to declare to SARS, is it the Net Amount Paid (which is what Nedbank has actually paid to me in the tax year ending 28/02/2014 or do I have to declare the total Interest which includes the 'Net Amount Accrued' that Nedbank has not paid tome yet.

Does community of property includes sole proprietor?

  Written by Marc   Posted 22 July 2014

Does a sole proprietorship form part of joint estate?

Verification documents for submission

  Written by Marc   Posted 18 July 2014

Dear Tim,I hope you can help I am really at wits' end right now with SARS. This is the situation. I subimitted my tax return via the efiling website on the 01/07/14. A refund was due to me due to private medical aid and dental procedures I paid cash which was rejected by the medical aid. On the 3rd according to my statment of account a refund was paid but then reversed the same happended for the 4th when I contacted the call centre they advised me that they had a system problem and that I...

Read more →

Application for tax number?

  Written by Marc   Posted 17 July 2014

I am applying for my tax number, but I'm not sure if I'll need my landlady to fill in the CRA01 form. I am a tenant and I pay rent to her monthly. Would she need to fill in the form, or am I okay with a certified letter from her saying that I am a rent-paying tenant?
Older posts →← Newer posts    18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  38