Costs to consider when letting a place

[TheGuy]

Definitely get a prepaid electricity meter installed.

Good idea noted thanks.

who are you renting to? one thing you have to remember here is that if you renting to a family member or friend, then you cannot claim any loss against your other income neither do you declare any profit on the rental income. but the capital gains tax rule still applies when you eventually do sell the property.

So if you don't rent to a family or friend but a 3rd party you can claim losses against your other income?

 

[Celine]

Good idea noted thanks.



So if you don't rent to a family or friend but a 3rd party you can claim losses against your other income?

yes that is how it works for tax purposes.

 

[supersunbird]

who are you renting to? one thing you have to remember here is that if you renting to a family member or friend, then you cannot claim any loss against your other income neither do you declare any profit on the rental income. but the capital gains tax rule still applies when you eventually do sell the property.

What would a determine a friend? Maybe you and the tenant become friends? What then? I think you got the wrong end of the stick.

If you get income from renting you must declare the income (obviously you can hide it if you are paid in cash and you never let in enter the banking system) wether its a friend or family member or some stranger. You can deduct your losses from you overall income.

 

[Celine]

What would a determine a friend? Maybe you and the tenant become friends? What then? I think you got the wrong end of the stick.

If you get income from renting you must declare the income (obviously you can hide it if you are paid in cash and you never let in enter the banking system) wether its a friend or family member or some stranger. You can deduct your losses from you overall income.

becoming friends after the fact is a totally different story and you know that. don't tell me i have the wrong end of the stick i did this for years as an assessor thank you very much.

 

[phoneJunky]

I am buying a house now, but my cousin is going to live with me. I just see his rent as helping me pay my bond, so I don't want to pay tax on that.

 

[TheGuy]

Just got a pre-approved bond from Standardbank so now to take the plunge and to start looking for a place.

Thanks for all the help so far guys.