Tax on rental income, bond in two names.

  Written by Marc   Posted 19 August 2013

I am co-owner of a townhouse and we are in the process of letting it. I understand that we can offset certain expenses (of a non-capital nature) to the income, to alleviate tax paid thereon. But now there is still the question of how to "split" the income and expenditure between the two taxpayers in question? We are engaged and have a 50/50 interest in the townhouse and all costs and expenses are shared between the two of us at the same ratio. Please advise.

How to declare foreign salary on ITR12 form

  Written by Marc   Posted 19 August 2013

Hello Tim,

I earned a SA salary and lived in SA until September last year, afterwards I went back abroad/overseas to my home country and worked there. I already submitted my SARS ITR12 form and I did not mention my foreign earned salary income because it is already taxed abroad and I also could not find the section to add this amount on the ITR12 form. Now my ITR12 form is under verification and I have to submit all relevant forms. Does SARS need my foreign payment slips and do they need my foreign bank statement with the interests? I declared a few rands which I earned on my foreign bank account which is below the threshold...

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Medical aid in my name, but wife pays for it

  Written by Marc   Posted 19 August 2013

The medical is in my name, but my wife pays for it. Who gets the benefit of including it on your tax tax directive? Myself or my wife, since we both have different tax numbers. Thanks. We are married, outside community of property, anti-nuptual with accrual.

2014 tax year - What is the exempt amount on the interest from investments?

  Written by Marc   Posted 18 August 2013

2014 Tax Year. What is the exempt amount on the interest from investments?

Source code for interest on pension fund

  Written by Marc   Posted 15 August 2013

Hi Tim, I have an IT3(b) letter stating that I should include the amount of R...... interest received on my Pension Fund that I have received. I am not sure under which source code I should put it?

Never submitted a tax return - what kind of tax penalties are there?

  Written by Marc   Posted 15 August 2013

Hi Tim,

One of my family members has never submitted a tax return and only actually registered for tax about a year ago. He has been working for about 13 years. That being said, 4 of those 13 years he worked overseas (he worked on the cruise ships were he earned tips only), for 3 years he worked as a waiter where he earned cash and was paid a minimum wage and 5 years as a restaurant manager where tax was deducted from his monthly salary, however, he was never registered for tax by his employer or on an individual capacity. Like I said, he only registered and got a tax number last year (2012). ...

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VAT payable although the company has been liquidated?

  Written by Marc   Posted 13 August 2013

I'm selling my business property. The company has been liquidated and my VAT no deactivated. Must the buyer pay VAT over ?
Thank you Tim

Regards
Jan

I have never filled in tax returns.

  Written by Marc   Posted 13 August 2013

Hi there,

Im looking to buy property later this year and my girlfriend says I need to start filling in tax returns. I have never done this before, always been sort of under the radar, but now starting to worry that I might get into some sort of trouble.

I do have a tax number, pay UIF and PAYE which all comes off my salary and I get my IRP5 forms yearly. I will be subscribing to TAXTIM to assist me from now on, but what if I somehow owe SARS a stack of money for never ever filling in the returns?...

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What are the tax implications for shares that have been sold?

  Written by Marc   Posted 13 August 2013

I am a pensioner over 65 and receive a pension from a living Annuity and a small income from interest (plus minus R5000 interest per annum). In March 2012 I sold shares that I received from Old Mutual and Sanlam many years ago. What are my tax implications and must I include this in my return?

Thanks

Dual taxation query for international property

  Written by Marc   Posted 13 August 2013

I am living in SA as an SA permanent resident with property in the UK, rented out. Hardly makes any income, so tax is minimal but a UK tax return is filled in.
1) does this UK income/expense need to be declared on a South African tax return?
2) does the salaried income, tax paid and property income and expenses earned in SA need to be reflected on a UK tax return?

Allowable deductions from rental property income

  Written by Marc   Posted 12 August 2013

Hi there,

Which expenses may be deducted from rental income? Repairs, levy, rates & taxes?
Also, for this particular property, we lived there for 6 months of the year, so can we claim 100% of the expenses incurred for repairs even though we only earned rental income for 3 months of the tax year?

Also, my husband and I are both owners of this property, can I include this property on my tax return only or do we need to split the gain/loss made?

Thank you! ...

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How does having an investment policy help reduce my tax?

  Written by Marc   Posted 12 August 2013

With Old Mutual I have an investment. Can I claim this as a tax deduction?

Medical expenses paid from a joint bank account

  Written by Marc   Posted 11 August 2013

We are married in community of property with one bank account in my name. My wife and our children have individual credit cards on the account and all my wife's income as well as tax refunds are paid into it. She is the principal member of our medical aid. Me and her use the bank account to pay medical expenses via credit card and EFT.

Will SARS disallow medical expenses paid from this account in my name, even if it is for her and our children? I settle medical bills via EFT, any one ...

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Will SARS pay interest for their delay? When will I get my money?

  Written by Marc   Posted 8 August 2013

Hi Tim, I submitted my IRP5 and supporting documents on the 11th July 2013. They told me it will take 21 working days for me to get my money but I have not received anything yet. Will SARS pay interest to me for their delay? When will I get my money?

Home Office Claims (Total Cost Calculation) Code 4028

  Written by Marc   Posted 7 August 2013

If I qualify to claim Home Office (Code 4028) expenses and I want to claim this, what is applicable? Note that I own the house and I have the square meters of both my office and my house. My office adheres to the criteria. My question is related to the claim amount.

Tax specifies: A- the area in m2 of the area specifically equipped and used regularly and exclusively for trade divided by B- the total area in m2 of the residence (including any outbuildings and the area used for trade in the residence) multiply by Total Costs the costs incurred in the acquisition and upkeep of the property (excluding expenses of a capital nature)....

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Do I still pay in when I received SMS from SARS saying they owe me after last return?

  Written by Marc   Posted 7 August 2013

Hi! Your website is very informative. I was requested to submit outstanding returns for last 5 yrs via telephone.
I however updated the returns and then was asked to pay a penalty of R12500. A few weeks later I received an ITSA- statement of account stating I owe R50 404-00. I however settled the amount as my wife received disability from her insurance. The collection department stated that I still owe them the penalty of R12500. The ITSA only reflects interest on late payment and no pen...

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I own half of 2 properties plus earn R7000pa interest on savings. Do I have to pay tax?

  Written by Marc   Posted 5 August 2013

Hi Tim,I am retired and earn approximately R7000 pa in interest on savings. Do I need to register as a tax payer? I am joint owner of our permanent residence plus a beach cottage.Many thanksBev

Freelancer questions - Personal / business home office expense and wear & tear on a PC

  Written by Marc   Posted 5 August 2013

I am a freelancer & am registered as a provisional tax payer.

With regards to sharing rental costs, seeing that one of my rooms in my flat is used for my office, can I add detergents, coffee & tea to my list of expenses? If I had an office, these would come off as office expenses I'm sure. So seeing that I use the communal area of my house, i.e. toilet & kitchen, should the running expenses not be added to the amount I split between personal/business use?

With r...

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What property expenses can be claimed for tax purposes?

  Written by Marc   Posted 28 July 2013

I have had to replace floor tiling to my holiday flat. Can I claim as maintenance and claim all costs in the tax year? Previous tiling was of poor quality and was lifting.

I'm non-resident in RSA but pay PAYE i.r.o. my Living Annuity

  Written by Marc   Posted 24 July 2013

My wife & I left RSA in 2011 & living in Namibia (we're awaiting permanent residence approval).
I receive a pension from Glacier (Sanlam) & they deduct PAYE. We also earn interest from ABSA in RSA & from Bank Windhoek in Namibia & from my son in Namibia. Do I have to submit tax returns in SA?

What happens if one does not submit tax returns for a long time?

  Written by Marc   Posted 24 July 2013

I have a friend who says he thinks he has not submitted for about 15 years, but now he wants to come clean.

Section 24J - Accrued Interest

  Written by Marc   Posted 23 July 2013

Mostly interested in understanding how the accrued method works. When is interest reported to SARS as accrued, and how can I be sure my bank is reporting correctly?

How does the rental tax on a first property, paid in cash, work?

  Written by Marc   Posted 23 July 2013

I currently live with my parents, on their property. I am looking at purchasing an apartment for R650 000 and renting it out. I have been given the option of paying for this in cash and then paying my family back at their low bond rate of 6.5% (prime -2%).

The property will be rented out for R5500. The expenses on the property (rates and levys) are R1800. So the rental income would be R3700pm. This R3700 as well as another R4300 will be paid monthly to my parents (total R8000pm).
...

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Starting with tax

  Written by Marc   Posted 22 July 2013

Hi Tim, We are two employers that works in a small company, and after one and a half years we found out that our employer did not pay or fill out the necessary documentation for our tax. We would like to sort this out ourselves as soon as possible - where do we start? Will there be any penalties? How can we work out what this will be? We both started working for the company after University. Personally I break even every month after medical aid contributions, student debt, rent etc. My co-worke...

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How much tax do I have to pay as a self employed buinessmen?

  Written by Marc   Posted 19 July 2013

Hey Tim, awesome site and very helpful info. I am not sure of my tax number, I was out the country for a few years and before that I was self employed and now again I am self employed. I last worked for a company n SA probably 10 years ago.

We have started 3 businesses since we have been in SA (my wife and I) and the first 2 didn't really get going at all and cost much more than they made which wasn't much at all. They were both Close Corporations but we never got to the stage when we got a bookkeeper in to do anything...

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