Type of tax to be paid and how?

Posted 26 February 2014

If I invest a lump sum in a diversified portfolio of shares, bonds and property and plan to earn an income from the capital, say R100 000 a month which type of tax would I pay and how?

Deductions on rental income - what is allowed?

Posted 21 February 2014

When doing deductions from rental income, for tax purposes, please advise which of these are deductible:
1) Monthly service fee charged on the bond;
2) Special levies raised for: Water meters (each unit is to have its own water meter, as per municipality); carports (I doubt it, as this is of a capital nature, but please confirm); garden tools.

SARS wants me to submit supporting documents, but the document list is empty

Posted 20 February 2014

I think SARS owes me a refund because my ITA34 reflected a negative number and said "refund due to you". Anyway they are now giving me grief, disputing my refund and demanding I respond in 21 days by sending me a "Final Request to Revise Income Tax Return or Submit Relevant Material". However in this document they say: "In the event that you couldn't find an error, you also had the option of submitting to SARS copies of the following material in support of the declarations made in your income tax return:" This is followed by an empty document list. ...

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Do I pay tax on interest from a fixed deposit?

Posted 19 February 2014

I have a fixed deposit at a bank for 2 years and interest is accrued yearly but paid on maturity, do I pay tax?

SARS requesting private km and logbook for everyday of the year in addition to business travel?

Posted 18 February 2014

I'm claiming tax on my travel allowance and submitted my logbook based on the SARS logbook. Earlier today I was notified that my travel claim is disallowed. When I called them they said I should add my personal travel and mileage for everyday of that tax year. Is this normal? I thought SARS was only interested in business travel.

What methods of apportionment of home office expenses are acceptable to SARS?

Posted 11 February 2014

I am a 100% commission earning employee who runs all my business activities from my residence. I estimate my business share of home expenses as being higher than simply the size of my office as a percentage of the house floor space. Can I include more area, such as the kitchen (used for meals during office hours) and the dining room (used for meetings)? Is floor space the only apportionment method?

Can remote workers claim the expense of a desk in a shared office (not a home office)

Posted 10 February 2014

I've been working remotely for a Johannesburg based company. I used to work from my actual home but started renting a desk at a shared office near my home instead. I was using this exclusively for work.

Can I claim this an expense on my tax?
I'm a full time employee of a company employed as a regular PAYE employee.

Retirement Annuity Topup

Posted 10 February 2014

I am a Pensioner in my seventies. Have a Retirement/Living Annuity ~ R 750 000 and want to top it up with R 500 000(for various reasons).

What is the Tax implication? From the R 500 000 contribution, what can I deduct in the current and future tax years?

Is CGT payable as the plot was bought with the intention to build a house?

Posted 10 February 2014

I bought a plot 20 years ago with the intention to build a house. Due to financial constraints I did not build nor purchase any other property. I have now sold the plot and purchased a house in much cheaper area

Am I liable for CGT on the sale of the plot?

Proportionate share of cgt

Posted 9 February 2014

How do I calculate Capital Gains Tax where 3 people own the property (35.5%, 35.5% and 29%) but only the latter 2 of them have primary residence?

Avoid annoyance of IRP6 submission?

Posted 9 February 2014

I am a pensioner and get a pension that is taxed plus RA payments and receive interest on investments that are below taxable.

How do I avoid filling in a IRP6?

Which property is my primary residence in SARS' eyes?

Posted 7 February 2014

I have just found a flat that I would like to buy (I already own one flat).

I was wondering how SARS determines what your primary residence is if you have two properties? Apparently if you sell your primary residence, you have a capital gains break of R1mil, but what's to stop you moving into your second property just before selling and claiming that it is your primary residence?

I have learned that I need to take tax into account with every decision!

How much of the inheritance should I allocate for personal income tax/estate duty?

Posted 7 February 2014

The lawyer who is finalising my uncle's will / estate said we would all be paid out by the end of Feb. There is no property or anything that is getting transferred only cash payments made to those of us in his will. What tax will I have to pay on it? Is there a limit/bracket/ceiling? and lastly even if we've got a lawyer dealing with it the estate, will the lawyer take care of the estate duty before paying out the beneficiaries?

Capital gains tax on inheritance and selling of fixed property.

Posted 5 February 2014

If I inherited a holiday from my uncle who passed away in 2013, and I am selling the home in 2014, what will my personal tax implications be? The value of the home at date of inheritance was R820,000 and the selling price of the home will be R1,100,000.

Family Loan - is it taxable?

Posted 31 January 2014

I loaned my sister R50,000 and she is currently paying me back R2,000 per month at 5% interest per year.Do I need to declare any of this on my tax return?

SA non-resident with rental property in SA what are the tax implications?

Posted 31 January 2014

I used to live and work in SA but then moved to the UK 8 years ago. Since then I have and still am working full time in the UK for a UK employer paying UK PAYE and now have UK citizenship.

For the last 4 years I have been sending money back to my SA bank account and used that money to purchase a rental property in SA.

As an example using dummy numbers for simplicity:
Purchase price: R100k
Deposit: R50k
Bond: R50k

Rental Income: R20k p.a....

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Am I a tax resident if I own property in south Africa even after having left in 2006?

Posted 31 January 2014

I left South Africa in 2006 to work overseas and visited the SARS prior to leaving the country. I was told I do not need to do anything further regarding tax. I returned for a holiday in 2008 and also bought a property in 2008. I was also told that any earnings I transfer to my South African bank account will only be taxed if I earn interest of 100 000 rand per year. I want to know if I own property am a tax resident? do I need to pay tax?
the property I purchased is not rented.

Is rental income from my primary residence taxable?

Posted 24 January 2014

Occasionally I rent out the spare bedroom in my primary residence. I'm not running a guesthouse - it's just a way of making a tiny bit of extra income and meeting some interesting people. I don't often have people staying - maybe for a total of 30 days out of the year. Do I need to declare this as "rental income"? If so,
1. What expenses can I claim against this income?
2. Where do I put it on my return? I'm already using the section "Local business, trade and professional income" for ...

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Are we liable for SA tax on UK interest and rental income ?

Posted 24 January 2014

I am living in South Africa ( dual nationality UK/SA) but not working. My only source of income is UK interest on savings and rental income from our house in UK. I pay tax in UK but from what I've read it appears I should be tax registered here. Is this the case?

If it is, how do I prove my income as the UK tax year runs from 6 April to 5 April . Would a copy of my UK tax return be sufficient proof of income? Would I need to worry about the date overlap ?

My husband is no...

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Capital gains tax on share portfolio?

Posted 16 January 2014

I have a stock market share portfolio. I have received a summary of capital gain for the 2013 tax year. Do I declare this gain even though the gain is still in my portfolio & not in my pocket? The amount is not shown on the IT3b as is the interest & dividends.

Is the primary residence exclusion applicable if property was lived in and rented out?

Posted 6 January 2014

I have a property that I have recently sold. I lived in it for 7 years and then rented it out for 3.5 years subsequently. Now that it has been sold, do I qualify for primary residence exclusion on any portion of the capital gain? Is it pro-rata for the years that it was my primary residence, or how would I apportion it?

Confused about a tax audit?

Posted 26 December 2013

Hi Tim

I made a mistake on my tax return and included my employer contribution plus my own contribution to the company pension as well as my RA contribution under the RA section of the ITR12 as I was confused by the note that came up on screen saying the amount should also include the pension amounts appearing on the IRP5. I was uncertain but erred by putting down the full pension and RA contribution amounts.

However, I think this flagged me for an audit (never happened bef...

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Tax on Sale of Personal Website?

Posted 22 December 2013

I own a website that I started as a Hobby (showcasing information about various sports teams and tournaments). The novelty has since worn off and I now want to sell the website. I have never earned or attempted to earn revenue from the website. Would I have to pay tax on the sale price? If so, what type of tax would I have to pay? (I am currently below the age of 65 and unemployed).

The website was given to me as a gift quite a number of years ago. I have since purchased domain names ...

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2010 return that is being resolved is already being made payable?

Posted 11 December 2013

What should I do if SARS keeps sending me sms to pay for an 'audit' that is still being audited?

How do you assure that rental income is ring fenced for tax purposes?

Posted 22 November 2013

What is the process when ring fencing rental income that does not make a profit 2013?
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