How to Calculate: Property Income tax?
By Marc Sevitz · Updated
* I have a bond on the place that need to be paid back to a bank.
* Paying more on the bond than receiving rent.
* Paying levies on the place.
* Paying Property tax.
* Paying maintanace on the property.
How can I calculate what to pay SARS for the property income?
You would compile a spreadsheet of all the income earned from renting the place out and then include all related expenses.
1. Only the interest on the bond would be allowed as a deduction against this income.
2. Levies, rates and all maintenance would be allowed as a deduction.
3. Any other related expenses on the property would be allowed as a deduction.
Then calculate whether you are making a profit or a loss and include that in your income tax return under the "local business" section.
1. Only the interest on the bond would be allowed as a deduction against this income.
2. Levies, rates and all maintenance would be allowed as a deduction.
3. Any other related expenses on the property would be allowed as a deduction.
Then calculate whether you are making a profit or a loss and include that in your income tax return under the "local business" section.