Hide
Earn under R350,000? Click here to see why you still need to file to get your Tax Refund.
CLOSE
Get SARS Tax Deadlines in your Inbox
 

We'll tell you when you need to file, along with tax tips and updates.

How do I claim for the purchase price of 3 flats that I rent out?

Posted 14 October 2012 under Tax Q&A


Let TaxTim
help you
submit your
Tax returns!



TaxTim will help you:
  • Do Your Tax Return Easily
  • Avoid penalties
  • Maximise your refund
Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
I have finished my claim, I noticed a place on the form to enter the interest I paid to the bank for the finance. Is there no way to claim for the actual money I paid for the flat each month compared to what I earned each month in rent?

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

TaxTim TaxTim says:
10 October 2012 at 17:19

You can only deduct the interest portion of the bond repayments against the rental income earned. Unfortunately you cannot claim the capital potion of the bond repayments as this go towards the base cost of the property in case you ever sell it.

Jasmin says:
15 November 2012 at 7:08

Thanks Tim for the response above.
How does one know the difference as it is one payment.
Does the bank provide a certificate at the end of each tax year of the amount paid in interest that one uses as proof for SARS?

Jasmin says:
15 November 2012 at 7:11

HI

I purchased a house in August last year and only had tenants from Jan 2012.
Can I include all the interest portion from Agust 2011 to Feb 2012 and set it off against the rental of two months?

TaxTim TaxTim says:
15 November 2012 at 15:11

Hi Jasmin,

You would only be able to include the interest payments if you actively searched for tenants to rent the property out to and from August or can successfully prove, if asked by SARS, that you purchased the property with the intention to rent it out or as investment property. Basically it is a judgement call as to whether you intended to rent out the property from August.

I hope this answers your question?

Regards,
Tim

TaxTim TaxTim says:
15 November 2012 at 15:17

Hi Jasmin,

The bank should either send you a statement showing the difference, or you would be able to see this on your homeloan bank statement. You can also request the bank to provide you with this information.

Regards,
Tim


Get SARS Tax Deadlines in your Inbox
 

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories


Let TaxTim
help you
submit your
Tax returns!



TaxTim will help you:
  • Do Your Tax Return Easily
  • Avoid penalties
  • Maximise your refund
Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started