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Can attorney's fees be deducted against rental income?

Posted 16 August 2014 under Tax Q&A


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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?

This entry was posted in Tax Q&A and tagged , , , , , . Bookmark the permalink.

TaxTim TaxTim says:
17 August 2014 at 12:38

No, these fees will increase the cost of the asset in the event you sell it and therefore reduce your capital gains tax on the profit.

Toph says:
17 August 2014 at 17:50

Ok so the transfer costs, bond registration costs, all these things are not deductible for tax? Just want to make sure of which expenses I would be allowed to list.

So far I would like to deduct: the complex levies, water, electricity, municipal rates and taxes, maintenance costs as well as interest paid on the property loan.

TaxTim TaxTim says:
17 August 2014 at 21:07

Yes all the latter costs are deductible, not the bond and transfer costs.

Toph says:
18 August 2014 at 1:35

Thanks!

TaxTim TaxTim says:
18 August 2014 at 9:13

Only a pleasure!


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