Hide
Earn under R350,000? Click here to see why you still need to file to get your Tax Refund.
CLOSE
Get Tax Deadline Reminders, News and Tips
 

We'll tell you when you need to file, along with tax tips and updates.
Try Tim Now

Purchasing a home for a relative

Posted 27 August 2015 under Tax Questions



Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
Winnie says:
25 August 2015 at 23:41

I am considering purchasing a residential property for a family relative, who would stay there and contribute towards the bond repayments. However, I would not live on the premises. From a tax perspective, what is the correct approach to avoid my relative's contributions being viewed as rental income?

This entry was posted in Tax Questions and tagged , , , , . Bookmark the permalink.

TaxTimTaxTim says:
26 August 2015 at 16:02

The contributions would effectively be "rental" income. However, you would be able to off-set the interest on the bond and other property related expenses (e.g. rates, electricity etc) so as to reduce the taxable income as far as possible.

See more details at the link below.
Rental property deductions


Winnie says:
27 August 2015 at 11:52

Thanks, TaxTim!

Your response has been very informative and useful.


TaxTimTaxTim says:
27 August 2015 at 12:21

Only a pleasure - thanks for the good feedback!


Get Tax Deadline Reminders, News and Tips
 

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →