Hi, my wife and I are married in community of property. We own a few residential flats that we rent out for extra income. When it is time to complete our annual tax return and we each fill in details of extra Income on the tax return, must we EACH declare the FULL income from the rentals OR must we EACH split it in HALF and declare that OR must we say we are in 50% partnership on the form where it allows for that? In the tax return it does ask how we are married so does SARS automatically split this rental income in half?
You would indicate you are married in COP and then put the full revenue and amount whereby SARS will split it on assessment.
TaxTimsays: 26 February 2016 at 14:19
This would be for incomes of rental, interest and royalties.
Justinsays: 26 February 2016 at 15:53
Would SARS indicate this split in the assessment? Also, is the same thing applicable to each of our provisional tax returns? Ie when estimating annual income do we each include full rental incomes in each of our provisional tax forms?
TaxTimsays: 28 February 2016 at 20:37
Yes, when you file you would see on the assessment that they have split the income in 2 and taxed only on half of the income. For Provisional Tax you would only include 50% in the calculation.
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