Hi, I have registered as a provisional tax payer and did my tax return in August. My rental expenses (levies, interest and taxes) are greater than my rental income I earn. Do I still need to file the provisional tax payer tax return now and see if any payments are due?
I have paid for your services for my personal income tax, but haven't received any of my tax information yet (for investments, medical aid etc). Must I just wait until those all come later in the year and send them through as and when they come?
If you had the result of less than R30 000 as taxable income - ie profit then you do not need to file a provisional tax return, however if this loss is just a once off and you usually make a profit then it is best to continue filing a provisional tax return.
Filing season only opens on 1 July, but you can begin the tax return as soon as documents do come in to be ready for the opening of tax season.
Paulsays: 23 March 2016 at 13:24
Hi, I have calculated a loss in the current year for my investment property by calculating:
Levies Rates Interest Bond repayments Valuation fees Agent fees Bond registration costs Legal fees
Is this correct and can this loss be carried forward to offset future profits? Should I complete a provisional tax return? I did register and do one in August for period 01
TaxTimsays: 23 March 2016 at 14:37
Bond repayments are not deductible, only the interest on the bond.
Total Bond initiation fee R 5 700.00 Legal fees R 7 259.00 Valuation fees R 2 793.00 Bond repayments R 65 057.26 Interest on Bond R 55 240.71
The legal, valuation and initiation fees go towards your capital gain when you sell the premises. The bond repayments excluding interest are not deductible. Therefore your loss is a lot smaller, however it would be best to file the IRP6 anyway.
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