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Is my bond installment, tax deductable?

Posted 14 July 2016 under Tax Questions



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Melg. says:
13 July 2016 at 16:51

Hello Tim. I am a home owner and currently staying in the house where do I have to put in the amounts that the bank send me via a tax invoice? The invoice states that its for tax purposes.

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TaxTimTaxTim says:
14 July 2016 at 8:00

The invoice your bank gave you is a statement of all the payments that you made towards your bond. You are unfortunately not allowed to deduct the interest or the instalment you paid on your bond for tax purpose as you are using the property as your primary residence.
Should you earn rental income on the property, only then will you be able to claim a deduction for the interest against the rental income.
The tax benefit you get as someone staying in the house is that when you sell the property you are not liable for any tax on the profit if the profit is less than R2mil.


Melg. says:
14 July 2016 at 8:04

Thank you I appreciate.


TaxTimTaxTim says:
14 July 2016 at 8:06

Only a pleasure!


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