In the Offer to Purchase it is referred to as "Occupational Interest" payable to Seller by purchaser for early occupation i.e. before date of Transfer. The challenge or point needing clarification is that this "interest" is payable in exchange for occupation to the seller for the interest he would have received on the Purchase price had occupation & transfer taken place at the same time. This interest is like a rental & often referred to as such...
If it is interest then I can make use of my interest rebate & my wife's as we are married in community of property if rental not... The question is how does SARS see it???
TaxTimsays: 22 November 2015 at 22:05
Occupational interest/rental is taxable as normal rental income unfortunately.
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