RENTAL INCOME PART 2:
Our latest reel on rental income received in excess of 135 000 views and taxpayers weren’t happy with the news we shared! In this follow up, we shed some light, it’s not all doom and gloom.
Rental properties are treated in the same way that businesses are, we declare the income to SARS but we most certainly claim all allowable expenses.

To name a few:
interest portion of bond repayments (not capital, you’ll get the benefit of the capital portion when/if you sell the property)
levies
rates and taxes
accounting fees (that includes your fees where a tax practitioner or accountant submits your tax returns on your behalf)
electricity
water
advertising fees
estate agent commissions and fees
repairs (not maintenance)
cleaning service fees
garden service fees
security
WiFi
depreciation on furniture, fittings and equipment
legal fees
home owners insurance

**pop in some general expenses**

Any expense incurred in the production of rental income is allowed to be put through to reduce the taxable income of the trade. We pay tax on the profit, not on the income! Keep proof of these expenses in case SARS wants to verify them and all should be in order.

Side note, if you are in a loss position with your rental property and the loss is not ring fenced, the rental loss will reduce your other taxable income and lower your overall tax liability for a year of assessment.

#sars #property #rentalincome #propertydevelopment #income #tax #stratfinn #loss #profit #expenses #incometax