Property Rental Calculation For SARS

[^^vampire^^]

Hi All

Filling my first tax return for renting a property to SARS. I saw on a few sites that if the income from renting is not over R30k per annum I don't have to register as a provisional tax payer. Is this R30k limit the profit or gross income value? (I don't live/work in SA so this is the only declarable values)

My financial breakdown:
===================
Rent 7000.00
Rates & Taxes 290.00
Levies 773.61
Sewerage 340.13
CSOS 5.47
Bond Interest 3672.88
Bond Admin Fee 68.40
Bank Fees 175.00

Total Expenses 5325.49
Profit Per Month 1674.51
Profit Per Year 20094.12

Are all these valid expenses to claim? Am I right in saying that because my profit is R20k per year I won't have to pay any tax or is that solely for income from a job?

TIA

 

[Archer]

Income is defined as "the amount remaining of the gross income of any person for any year or period of assessment after deducting therefrom any amounts exempt from normal tax under Part I of Chapter II;"
So basically net income

 

[cyclesmith]

Hi Vampire,

Assuming that you earn the income in your personal name and not through a trust/ pty/ other entity, you will be fine. The threshold of R75 750 does not apply to income from earning a salary only, but to your entire income derived from all activities you carry on. The expenses you mentioned are all valid and deductible. Just keep copies of everything ready to upload to SARS, they probably will query the income and expenses, if not, you're lucky.

 

[HavocXphere]

Are all these valid expenses to claim?

You get to pay a fortune to a tax expert to find out.

Alternatively you can read up on sections s11(a) and s23(g) online (plus relevant case law) and pray that you interpret the wording correctly.

If you're too lazy to do that - here is a guideline (that is probably wrong & will get you into trouble): Any expense that is directly & necessarily incurred to produce an income will be OK. If you dig into the law you'll see that things are a bit more complicated but thats a quick and nasty approximation.

I won't have to pay any tax or is that solely for income from a job?

It'll depend on whether you get the basic allowance. I don't recall whether that applies to non-residents or not....

The not applying for provisional tax @30k has nothing to do with whether you pay it or not...provisional just affects the timing.

Income is defined as "the amount remaining of the gross income of any person for any year or period of assessment after deducting therefrom any amounts exempt from normal tax under Part I of Chapter II;"
So basically net income

Solid copy paste out of the act...but also completely irrelevant. OP should be looking at the definition of "taxable income" if anything, along with the sections I mentioned above.

Also...all of the above is likely wrong...my ZA tax knowledge has faded quite a bit. So good luck with that.