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TaxTim says: 25 February 2015 at 6:19 Was that extra amount part of trying to reconnect the electricity - what exactly was it for? |
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Confused says: 25 February 2015 at 21:53 After inquiring about the demand component expense, I was told that it is money that the municipality uses to lay electricity to areas that do not have power. Which I can only assume means that they are trying to find cash to get poor people onto the grid. The account that I paid clearly states two amounts. One for 'connection fees' which physically ties the wires to each other to get the power to the house and another expense which is the 'demand component'. Its like a compulsory tax. The account states that the connection will not be done until the full account is paid for. |
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TaxTim says: 26 February 2015 at 21:06 This seems likes it would have to be a part of the capital cost, you cannot receive electricity without it making the property useless to you therefore these costs need to be added to the base cost of the property which will reduce capital gain when you sell the property one day. |
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Confused says: 26 February 2015 at 21:42 Thank you. I'll add it to the base cost. I guess all the lawyers costs and fees, as well as the rates and levies paid in advance before the building construction began are also part of the base cost? |
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TaxTim says: 26 February 2015 at 21:50 Yes these would be included in the capital cost as well. |
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Confused says: 26 February 2015 at 22:33 Great. I've had a chance to read the rest of your web page. You two have come up with a brilliant concept. You'll be hearing from me when its time to do the my return. Thanks TaxTim, you're a star! |
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TaxTim says: 2 March 2015 at 7:40 Fantastic, thanks so much for the positive words and glad we could assist. |
