Hi Tim, I bought a flat in April 2014, which is rented out to students to supplement my income once I retire. What can I claim from SARS for the tax year ending February 2015, i. E. Transfer costs, bond repayment, levies, municipal services, maintenance, security upgrades? Your advice will be appreciated.
You can claim all expenses incurred in earning that rental income. That would be the rates and levies, water and electricity and other expenditure. Capital items such as maintenance can also be claimed, improvements and transfer costs cannot be claimed, these will be added to the cost of the property and reduce the capital gains when you sell the property. Regarding the bond repayments, only the interest can be claimed against the income earned, not the capital repayments.
Get Tax Deadline Reminders, News and Tips
We'll tell you when you need to file, along with tax tips and updates.