Just want to hear other opinions, so here goes:-
1. In March 2010, I signed an offer to purchase a new house, and also sold my existing primary residence, via a linked transaction.
2. Occupational rental in both transactions was set at R8500 per month.
3. As a result of complications, the purchase and sale was dragged out. The sale was registered in in April 2011, and purchase of new property is still not registered.
Interpretation for tax season 2011 :-
1. I need to declare my occupational rental as rental income, and deduct any interest on mortgage bond, as well as my rates & taxes.
2. The sale of the property is only to be declared in the 2012 tax season, as the registration was effected after 28/2/2011.
1. Even though the intention was to sell my primary residence, have I now got a possible problem with CGT? I was not resident in the house for 12 months!
2. I'm guessing it is not standard practice that sellers declare their occupational rental received, but please confirm that this is actually the correct way to handle it, i.e. to actually declare it.
It'll be good to hear some opinion...