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Ryebread says: 20 July 2015 at 13:25 Hello. I would like to know how to calculate my tax if renting out a property I own? Would this be added as a lump sum at the end of the tax year or would this need to be included in my salary on monthly basis? |
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TaxTim says: 20 July 2015 at 21:08 You would need to include this in your tax return at the end of the tax year and it will be taxed on top of your salary. Please read our article on What is Provisional Tax? How and when? as you may need to register as a provisional taxpayer. |
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Ryebread says: 20 July 2015 at 21:14 Ah okay. So, for example, if you earned a gross salary of R 5000.00 and have a property that you rent out for R 5000.00 per month, at the end of the year, when submitting your tax return, you would submit R 60 000.00 under 'other income'? Could the addition of rental income push you into a higher tax bracket? |
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TaxTim says: 20 July 2015 at 21:17 Yes that is correct, this would then push you into the R120 000 earnings which would mean your taxes would be higher then if you just earned R60 000. You can make use of our SARS income tax calculator to work out what the taxes would be. |
