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?
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.
Get Tax Deadline Reminders, News and Tips
We'll tell you when you need to file, along with tax tips and updates.