You would be able to deduct 10% of the interest and other related costs like insurance, electricity and the domestic and levies/rates. You will need to prove this to SARS so keep a spreadsheet showing these costs and all the actual invoices for the expenses.
Ellasays: 13 November 2014 at 8:15
Thank you Tim. Will this deduction have an influence when selling the house one day?
TaxTimsays: 13 November 2014 at 22:52
Yes it would as you would have to apportion the proceeds/primary residence exclusion.
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