Can attorney's fees be deducted against rental income?
By Marc Sevitz · Updated
In the process of buying the property I paid the transfer attorney fees of R10 620 and the bond attorney R12 963.
Am I allowed to include these amounts in my ITR12 tax return as Local Business Expenditure under Legal Fees or some other category?
No, these fees will increase the cost of the asset in the event you sell it and therefore reduce your capital gains tax on the profit.
Ok so the transfer costs, bond registration costs, all these things are not deductible for tax? Just want to make sure of which expenses I would be allowed to list.
So far I would like to deduct: the complex levies, water, electricity, municipal rates and taxes, maintenance costs as well as interest paid on the property loan.
So far I would like to deduct: the complex levies, water, electricity, municipal rates and taxes, maintenance costs as well as interest paid on the property loan.
Yes all the latter costs are deductible, not the bond and transfer costs.
Thanks!
Only a pleasure!