6 April 2022 at 21:20
I have 2 questions
Question 1: My wife sometimes transfers some money into my account to pay a certain bill. The amounts total less than R100,000, it is never anything above that. Do I need to declare this under the TaxTim section question "Did you earn or receive any other money that you think should NOT be taxed?"? Will I be taxed on that amount?
Question 2: I sold my car and bought another car. Do I need to declare the amount I received after settling the remaining installment amount or is it not necessary to do so?
7 April 2022 at 22:35
Answer 1: You don't need to declare the money received from your wife as donations between spouses are exempt from donations tax. This means that even if these payments cover home expenses such medical expenses, rent, bond repayments, car instalments, food, water and lights or rates, these payments will never be seen as an additional income on your part.
Answer 2: You also don't need to declare anything related to the car either. Cars are considered personal assets and therefore their disposal would not attract capital gains tax (unless you are in the business of buying and selling cars). If you are in the business of selling cars (if you buy and sell cars often to make a profit) you are required to declare this income under the self-employed income section of your return. You are however able to claim expenses you incurred while gerenating this income, such as advertisements, repairs and maintenance of the vehicle and any insurance or road worthy costs you might have incurred.