Allowable deductions from rental income

Posted 12 January 2016

I did some renovations to a rental property between tenants. I replaced the carpet with tiles, replaced all the kitchen cupboards and the oven, and repainted. All of these renovations were specified in my rental contract with the new tenant - she viewed the unit before the renovations, and we agreed that they would be carried out before she took occupation. Which costs can I deduct as expenses in the production of the rental, or must I add all of the costs to the base cost of the property for pu...

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Property sale issue

Posted 11 January 2016

I'm selling a property of mine - it's my primary residence. The sale agreement will have the buyer settle the amount with me in monthly installments. Will this cause a problem with my tax return in terms of capital gains etc? Or would the end result be the same as if the buyer had paid me a lump sum?

Capital Gains Tax / Primary Residence

Posted 6 January 2016

I would like to sell a rental property of mine. How long do I have to go an stay in the rental property, before it can be classified as a primary residence with regard to Capital Gains Tax?

How do I avoid double taxation between RSA and the USA?

Posted 5 January 2016

I just invested in a Global Property index fund held under a tax-free savings account. I believe this is exempted from SARS 15% dividends tax. The IRS tax rate for foreign investment goes as high as 30%! Is there a possible chance that I may be taxed twice, dividends tax and then capital gains tax, when I sell and bring over the amount back in South Africa?

Exchange rate gain

Posted 4 January 2016

Currency exchange rate gain when bringing money back into SA
What is this classed as earnings? Capital Gain Dividend?

Do you have to pay CGT with your first provisional tax payment?

Posted 10 December 2015

We are completing our 1st provisional tax return for our property company, and because we have disposed of properties in the last 6 months, this has triggered a Capital Gain which is payable to SARS (we donâ%u20AC%u2122t have any assessed losses which we can utilise). Our question is quite simple. Do you have to pay over the CGT to SARS with the 1st provisional tax payment, or can you defer it to your 2nd provisional tax payment?

Ideally we would like to push this out by 6 months to...

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Capital gain and recoupment consideration?

Posted 9 December 2015

When you sell a property at a profit. Should there be a recoupment in your tax return as well as a capital gain? I. E. You reverse any deductions that you have received over the life of the asset via the recoupment, and then the proceeds are reduced by the recoupment and the deductions are reduced against the base cost.

Capital Gains Tax on foreign shares

Posted 2 December 2015

Hi guys, I have a Dutch client. He moved here and bought a home in 2012. He had foreign (FTSE and S&P) shares which he has just sold for a small profit. My understanding is that he would not be subject to CGT as he has not been considered "resident" via both Ordinarily Resident and Physical Residence yet. Can you clarify pls??

What would be the amount of tax we would have to pay and why.

Posted 2 December 2015

Bought vacant land contract dated 5th October 2001 in a cc, for R87764. 00, became the members on 7th January 2002, what would the tax implications be if I sell this property now at R1 000 000.

Does provisional income/ capital gains count towards income iro RA contributions?

Posted 1 December 2015

I own a business and I draw a standard non- pensionable salary of R1 440 000 (120K p/m). I pay R360k (30k p/m)to an RA. Which means I actually don't earn enough to achieve the max tax destructibility for my RA. However this year for the first time I have other income from share sales (my share trading G&L statement currently reflects a gain of 264K). Will this income add to the non-pensionable salary above and thereby reduce the disallowed portion of the RA Contribution?

Forgot to include something on tax return

Posted 1 December 2015

HI. What if you forget to include something on your tax return, but have already filed it..... I have incurred a capital gain due to the sale of a property, and see that I should have included some share sales, which incurred a loss. Would they have been set off against each other?

Does Base Cost include interest over time?

Posted 1 December 2015

I am selling a rental house. Will the interest on my bond over the period of ownership be part of the base cost?

Capital gain from trust split between spouse and myself

Posted 26 November 2015

I earn a salary and have an IRP5. This year I have received a capital gain distribution from a trust of which I am a beneficiary of. A property was sold in the Trust and it was decided to split the capital gain between myself and my husband in equal shares. I am not sure how to deal with this on my tax return. I assume that I tick the box that says that a capital gain is applicable - it then asks me to put in the proceeds and base cost etc, but as I only received half the gain I am not too sure ...

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Can I avoid CGT on the sale of EFTs if I move the proceeds directly into an RA.

Posted 26 November 2015

I am 61 yrs. Old. I have been investing in ETF's as a form of retirement savings since mid 90's. I would like to move my total EFT's into an RA. Would SARS allow me to do this without without having to pay CGT on the "sale" of my EFT's.

Declaring profit on Bitcoin trading and speculation

Posted 25 November 2015

I am earning a local profit from trading Bitcoin in various exchanges throughout the world. I have lodged this under: Other Receipts Accruals - Royalties - Amount Profit - 49224

This profit was calculated by tracking how many payments I receive FROM BitX.co.za and Ice3x.co.za (which was used to trade Bitcoin for ZAR)
LESS payments made TO BitX and Ice3x, as well as all payments made to my Mercantile Bank account (which is only used to send Forex to offshore Bitcoin exchanges) as well as any other Forex payments (through my main account at FNB) destined for offshore Bitcoin exchanges...

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Are you able to help with semi-complex returns as well such as shares dividends and trust incomes?

Posted 25 November 2015

Are you able to help with semi-complex tax returns as well such as shares dividends and trust incomes?

Can I add bond & registration fees to a rental

Posted 25 November 2015

Rental - can I claim or declare bond registration fees and transfer fees on a rental

Do we need to submit a tax return

Posted 24 November 2015

I get about R2000 /month from my living anuity and R900 / month from an investment. I no longer own property and my medical aid is about R1200/ month. I sometimes get about R2000 / month doing odd jobs and I supplement my income with the proceeds of the sale of my house. Do I have to submit a tax return
My mother is 92 and gets R8000/ month from one investment also has medical aid. Does she have to submit a tax return. Thank you

Primary residence definition

Posted 24 November 2015

I was letting out my property and was renting in another suburb for 3 years before selling my property. Is that property still seen as my primary residence?

What is the base cost if the asset was acquired by a will?

Posted 24 November 2015

The asset was acquired by a will, so I did not pay anything for it. How do you determine the base cost value.

Any tax on inheritance of a house

Posted 24 November 2015

My daughter will inherit my primary residence. Are there any tax implications for her and/or for my estate? Like CGT for example.

Declaring financial derivative gains on the ITR12

Posted 24 November 2015

I earned income as the result of trade in financial derivates. I am not a professional trader and do this in my spare time. How do I declare this on the ITR12 and how do I claim expenses against this income? Is this defined as a business or as investing and capital gains? I used my home office and own equipment for financial research and online trading. In a previous answer you stated that this type of income can be declared on the ITR12 but somehow I missed it in the TaxTim Q&A process. When I ...

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Can financial derivative gains be declared on the ITR12

Posted 22 November 2015

I earned income using financial derivatives during the 2014/2015 tax year. I was not registered as a provisional tax payer. Can I declare my income on the ITR12 personal income tax return? If not, what steps do I need to take?

Can I offset my rent paid against my rental income derived?

Posted 22 November 2015

I own an apartment that I let out. However I also rent an apartment for me to live in. Can I offset my rental expense against my rental income on my primary residence?

Declaring Dual listed company dividends

Posted 22 November 2015

I own Richemont and Billiton shares that are dual listed on the JSE. On my IT3b:

- Richemont dividends are shown as "foreign dividends" and 35% tax is deducted as "foreign tax paid".
- BHP Billiton dividends are shown as "foreign dividends" but the normal 15% witholding tax is deducted.

Do I need to declare both of these under foreign dividends and foreign tax credits or are they different?
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