All rental income should be declared to SARS

Income received from investment and rental properties falls into the category of taxable income, and as such should be declared to SARS and included in your annual tax return.

Property Blog Articles | Advice | Contractual Matters | Market News

There has been much argument for using property as a means of investment and wealth generation, and if considered investments are made, it certainly can be a profitable strategy. It is important to bear in mind though, that with the benefits of owning multiple properties and using these as a form of income generation, comes responsibilities, including tax obligations.

Each year, at the financial year end, the South African Revenue Service (SARS) assesses the amount that each person owes in taxes based on their taxable income. For some, this may be a simple scenario of a single salary. But for others, this taxable income could be made up from various income streams.

Property ownership is often considered a valuable investment and can be a positive way of earning a passive income for those who are able to own multiple properties and rent these out.

The tax owed will be determined based on the total income received by an individual during the relevant tax year, minus the various tax-deductible expenses such as medical aid or pension contributions, and costs relating to the day-to-day running of a business.

There may well be such day-to-day expenses associated with managing rental properties that could be considered tax deductible, and if further clarity is needed on these, it is advisable to contact an experienced tax practitioner.

#‎AskSnymans‬ your property-related legal questions on Facebook.

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All rental income should be declared to SARS

Income received from investment and rental properties falls into the category of taxable income, and as such should be declared to SARS and included in your annual tax return.

Property Blog Articles | Advice | Contractual Matters | Market News

There has been much argument for using property as a means of investment and wealth generation, and if considered investments are made, it certainly can be a profitable strategy. It is important to bear in mind though, that with the benefits of owning multiple properties and using these as a form of income generation, comes responsibilities, including tax obligations.

Each year, at the financial year end, the South African Revenue Service (SARS) assesses the amount that each person owes in taxes based on their taxable income. For some, this may be a simple scenario of a single salary. But for others, this taxable income could be made up from various income streams.

Property ownership is often considered a valuable investment and can be a positive way of earning a passive income for those who are able to own multiple properties and rent these out.

The tax owed will be determined based on the total income received by an individual during the relevant tax year, minus the various tax-deductible expenses such as medical aid or pension contributions, and costs relating to the day-to-day running of a business.

There may well be such day-to-day expenses associated with managing rental properties that could be considered tax deductible, and if further clarity is needed on these, it is advisable to contact an experienced tax practitioner.

#‎AskSnymans‬ your property-related legal questions on Facebook.

1079