SARS ring-fenced the loss on my rental property, can I request that they revise my assessment?
By Alicia Human · Updated
I had a property that I rented out to tenants for the last 4 years. In the 2015/16 tax year, I made a loss on this, due to the expenses exceeding the rental income I received. I reflected this loss in my tax return. SARS then audited my tax return, and they ring-fenced the loss. However, at the end of the 2015/16 tax year, I sold the property, and have obviously not been receiving rent or incurring expenses relating to the property since then. What now happens to the ring-fenced amount? Am I entitled to ask SARS to re-assess given the circumstances? Or do I just accept it as a loss?
Many thanks!
Many thanks!
Please read our blog on Ring Fencing and also work through our decision tree to see under what circumstances SARS will ring-fence your loss and when they will allow you to set it off against other income.