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Pierre says: 4 October 2015 at 21:15 Myself and the wife ( non-residents / Irish citizens and tax payers) bought a property in South Africa in both our names. Does the R 65 000 tax exemption apply to each of us individually? The combined rental income is R 120 000 after expenses/deductions. We plan to invest the rental income in a flexible money market account at 5,75%. If the exemption applies to both i. O. W R 130 000 combined, do we have to register for tax? Can flight tickets once in two years to oversee maintenance and improvements to the property be deducted,if tax is payable? |
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TaxTim says: 5 October 2015 at 9:34 Where does the R65 000 tax exemption amount come from? For the 2016 year of assessment the tax threshold for individuals under the age of 65 is R73 650 and thereafter tax is payable as per the tax brackets. If the property is in both your names then you would split the rental income less the expenses between you which would be your taxable income. Those flights can be deducted provided they are a legitimate business expense. The interest earned on the money market investment would be taxable after it has reached the threshold of R23 800 which is the first portion of tax free interest. |
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