SARS E-Filing 2020/21

richieza said:
Questions to ask yourself..
  1. Whats your office to house ratio? if office 1% of area does it make sense then vs effort?
  2. Do you want to be audited?
  3. Do you have all backups?
  4. If you own house - do you want to deal with capital gains impact of home office later?
  5. Etc
Also you mean the spare room is NEVER used as a spare bedroom and is solely used as an office.
Click to expand...
Thanks for the reply.
I am still busy reading this thread....i noticed some people don't claim for the rental/utilities, etc....might do the same.

But rather claim for internet, and items i bought for my home office.

1) will have to calculate but its a 2 bedroom flat, 1 being the office.
2) i dont mind, i have nothing to hide
3) not too sure what you mean?
4) I do own the house and prefer not to deal with this, so considering not applying for utilities.

Of course, spare bedroom is only used as an office!
the fact that i keep a spare bed in it, will it be a problem?
 
bar1 said:
Thanks for the reply.
I am still busy reading this thread....i noticed some people don't claim for the rental/utilities, etc....might do the same.

But rather claim for internet, and items i bought for my home office.

1) will have to calculate but its a 2 bedroom flat, 1 being the office.
2) i dont mind, i have nothing to hide
3) not too sure what you mean?
4) I do own the house and prefer not to deal with this, so considering not applying for utilities.

Of course, spare bedroom is only used as an office!
the fact that i keep a spare bed in it, will it be a problem?
Click to expand...
There are differences for commission vs salaried employees

Salaried:
Cant claim internet {not in 2021}

Can claim items for office - UPS, Desk, Chair etc.

1. Nice - office area divided by total floor area.
2. Nothing? :) [not even eBucks sales]
3. All original invoices / photos of room etc.
4. grey area - i dont know if this is 100% correct - im not a tax advisor., if not claiming the cost of room but only cost of equipment it falls under depreciation and i dont think this is then "homeoffice" [im not 100% sure here]
 
i am sure some people mentioned they claim for fiber?i am a salaried employee .

was planning on claiming for a desk, big powerbank i got, and a monitor
 
If you bought shares as a capital investment for say R100k and after five years it is worth R150k.

You sell it and make a profit of 50k.

The first 40,000 isn't taxed. So you are only taxed on the remaining profit which is 10k.

The capital gains tax is only calculated on 40% on that. So 40% of 10,000. Which is R4000.

You will then only be taxed on that amount.



But let's say you didn't wait five years. Bought shares for R10,000 in 2020. In 2021 it is worth R15,000.

You sell it, and the profit is R5000. As SARS considers this trader behavior, you will be taxed at the full profit amount.

So if throughout the year you keep buying and selling, you need to keep record of it all for taxation purposes.

SARS gets this information anyway. But you still need to file it with your taxes and pay anything due.

If you don't pay in time, SARS can calculate interest on unpaid taxes.

Is the bolded part correct? If so, what is the tax rate?
 
Completed my return on the 16th, was NOT selected for verification or audit, just got a notification now that I have been selected for verification...

Is that even a thing?
 

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Any idea what the penalty is for late e-filing ? Sygnia & SARS still haven't resolved one of my issues. :crying:
 
R13... said:
Seems to be from 250 to 16000. But you can dispute the penalty of there's a good reason you failed to submit on time.
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Thanks, I have recorded all the case numbers that SARS have sent me since July. Hopefully, that would be a good reason as fault is on their side.
 
Holy mother of Flying Spaghetti Monster & flying teapot - SARS has corrected the mistake on their side and I was able to submit the tax returns successfully. Will get something back this time instead of paying it in. YAY.
 
I'm trying the work from home tax claim.

Did my 1st submission (26/9/2021). Including
1) Home loan tax certificate
2) Property square meterage and office size calculations
3) Utility Bill - proof of address
4) Invoice for items claimed - office chair 100% deductible
5) Calculation of all rates and electricity for the tax year
6) Letter from employer stating I worked from home

The came back wanted more supporting documents (8/11/2021)
1) Calculation breakdown of the work from home claim (I thought they would be able to figure that out) So I basically did a cut and paste of Tax Tims calculation
2) Photos of the office

Then a 2nd letter asking for stuff I had pretty much already submitted. So I renamed some documents to make it clearer and resubmitted those.

They clearly aren't making it easier. I read somewhere they have rejected about 67% of attempts to claim home office expenses. But I definitely meet the requirements so I'm hopeful.
 
schuits said:
1) Calculation breakdown of the work from home claim (I thought they would be able to figure that out) So I basically did a cut and paste of Tax Tims calculation

They clearly aren't making it easier. I read somewhere they have rejected about 67% of attempts to claim home office expenses. But I definitely meet the requirements so I'm hopeful.
Click to expand...
That's exactly what I did, and it was approved. It certainly was an uphill battle only for tiny amount of extra cash (Got like 2k back just for WFH deductions)

I doubt I will go through the effort again next year, its just to much waiting to sort it out, I don't mind the back and forth admin tasks but they took basically 21 working days each time after I submitted things to respond.
 
thedudeman said:
Completed my return on the 16th, was NOT selected for verification or audit, just got a notification now that I have been selected for verification...

Is that even a thing?
Click to expand...
I have been selected for verification 6 times this year so far, and I have had a full audit. My tax return was in on the first day of July but I am still waiting.

I have some friends who are experiencing the same thing.

I think SARS is really messed up this year, they keep on asking for the same documentation. When you phone they say they have no idea why my refund have not been paid yet.
 
How does one get selected for audit/verification? Is it one of those random things which can affect even straight forward income tax return (e.g. if it is only one income source from one IRP5, I would say it should be straight forward) Or is it only for things like WFH/claiming more expense than rental profit etc ?
 
surface said:
How does one get selected for audit/verification? Is it one of those random things which can affect even straight forward income tax return (e.g. if it is only one income source from one IRP5, I would say it should be straight forward) Or is it only for things like WFH/claiming more expense than rental profit etc ?
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I think it is random in most cases. I have disability claims so I get selected every year.
 
Gudnews said:
But let's say you didn't wait five years. Bought shares for R10,000 in 2020. In 2021 it is worth R15,000.

You sell it, and the profit is R5000. As SARS considers this trader behavior, you will be taxed at the full profit amount.

So if throughout the year you keep buying and selling, you need to keep record of it all for taxation purposes.

SARS gets this information anyway. But you still need to file it with your taxes and pay anything due.

If you don't pay in time, SARS can calculate interest on unpaid taxes.

Is the bolded part correct? If so, what is the tax rate?
Click to expand...

Hi

Do you put profit on shares sold, revenue of nature(held < 3 years) under code 4214 - other income or some place else?
Easy Equities only show the code 4250 which is Profit on shares sold, capital gain(shares held > 3 years)
 
Gudnews said:
If you bought shares as a capital investment for say R100k and after five years it is worth R150k.

You sell it and make a profit of 50k.

The first 40,000 isn't taxed. So you are only taxed on the remaining profit which is 10k.

The capital gains tax is only calculated on 40% on that. So 40% of 10,000. Which is R4000.

You will then only be taxed on that amount.



But let's say you didn't wait five years. Bought shares for R10,000 in 2020. In 2021 it is worth R15,000.

You sell it, and the profit is R5000. As SARS considers this trader behavior, you will be taxed at the full profit amount.

So if throughout the year you keep buying and selling, you need to keep record of it all for taxation purposes.

SARS gets this information anyway. But you still need to file it with your taxes and pay anything due.

If you don't pay in time, SARS can calculate interest on unpaid taxes.

Is the bolded part correct? If so, what is the tax rate?
Click to expand...
If I read below correctly, first 40K is exempt when you sell shares - whether it is after 5 years or 1 day doesn't seem relevant?

businesstech.co.za

Here are the basic taxes you should know about if you’re investing your money

Two investments may offer identical returns, but the realised after-tax returns can look substantially different, says Kelin Pottier, product development specialist at 10X Investments.
businesstech.co.za businesstech.co.za

When you sell an investment in a collective investment scheme (ETF or unit trust) for more than you paid for it, the profit is known as a capital gain. The first R40,000 is exempt, but the rest is liable for Capital Gains Tax (CGT).
Click to expand...
 
xbmcfan said:
Hi

Do you put profit on shares sold, revenue of nature(held < 3 years) under code 4214 - other income or some place else?
Easy Equities only show the code 4250 which is Profit on shares sold, capital gain(shares held > 3 years)
Click to expand...
This question is above my knowledge I'm afraid to say. I only expect to deal with the scenario I posted next tax season.
 
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