Can you claim for personal legal taxes?
By Marc Sevitz · Updated
What was the purpose of the legal costs?
The case in question is that my parents own a property and the current tenant [family member] is claiming rights to own the property and refuses to move out of the property. The legal costs incurred were for consultations for a trial and preparation thereof for this dispute.
Unfortunately not, the result of this case would not result in income earned for you or your parents so no deduction can be claimed.
Thank you for your response. Would it apply if the house in question is going to be sold and monies be returned to my parents once the case is completed? The house cannot be sold until the tenant is removed from the property.
That would be a capital gain not an income. If you can demonstrate to SARS that the legal costs are a cost of selling the property, then you would be able to deduct this from the selling price and reduce the Capital Gains, not the actual income.
Thank you. What section of the tax return do I submit that under? Sorry I have never submitted this before in a tax return.
Thank you. What section of the tax return do I submit that under? Sorry I have never submitted this before in a tax return.
You would not include this anywhere for now, when you do sell the house, you would reduce the Proceeds amount by the costs.
Thank you.
Only a pleasure!