I own an investment flat that currently provides a negative cash flow. I am employed and pay quite a bit of tax with very little deductions. Can I offset any amount "lost" on the property against my taxable income and so reduce tax payable to SARS legitimately?
Yes you will be able to claim a loss on this amount against your normal tax, but SARS may only carry this amount over to each year against future profits and most likely will not result in a tax refund. However in a lot of cases a refund does occur if you aren't making losses every year so either way you will have a tax benefit whether it be now or in the future.
Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.