22 July 2016 at 13:42
My wife and I (married outside of community of property) jointly own a property (50/50). We rent this property out, and receive a rental income in doing so. The lease agreement with our tenant lists both myself and my wife as the lessors. The rental payment from the tenant is made into my own bank account, from where it is balanced into my wife and I's joint monthly household budget. There are also monthly expenses associated with leasing our property, such as maintenance, services, and bond interest. The bond also lists my wife and I as joint borrowers, with joint liability (50/50) but the bond repayments are made from my own bank account, again with my wife's liability towards this balanced out in our household budget. We are of the opinion that all income and expenses relating to this lease are split 50/50, however the single bank account for the income and expenses muddies the matter from a legal perspective. How should we split and declare our rental income and expenses?
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22 July 2016 at 14:13
When you complete your tax return you need to declare the rental income under the rental income section SARS provides.
This section will ask if you had a partner and you need to state that you had 50/50, you need to declare the entire income including the entire expenses and SARS will do the split and your wife will declare the same, if you guys are requested to submit supporting documents you will both submit your bank statement and your bond instalment statement that shows the debt is in both your names.