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How to Calculate: Property Income tax?
Posted 15 February 2013 under
Tax Q&A
I want to know how to calculate the amount of tax that I need to pay SARS if I am renting out my property.
* I have a bond on the place that need to be paid back to a bank.
* Paying more on the bond than receiving rent.
* Paying levies on the place.
* Paying Property tax.
* Paying maintanace on the property.
How can I calculate what to pay SARS for the property income?
This entry was posted in Tax Q&A
and tagged Deductions, Rental Income, Dividends, Penalties.
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TaxTim says:
17 February 2013 at 16:01
You would compile a spreadsheet of all the income earned from renting the place out and then include all related expenses.
1. Only the interest on the bond would be allowed as a deduction against this income.
2. Levies, rates and all maintenance would be allowed as a deduction.
3. Any other related expenses on the property would be allowed as a deduction.
Then calculate whether you are making a profit or a loss and include that in your income tax return under the "local business" section.
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