Loss on rental property - SARS refund?

[mango]

Hello everyone,

I have a scenario where I'm a bit confused at the moment. I'm not the sharpest tool in the shed when it comes to Tax...

Lets say Jonny has a girlfriend Amanda, they bought a rental apartment together as an investment which they will rent out.

- Rental income for the year was R 85 000.00

- all deductible expenses (interest, rates & taxes, Rental management fees) comes to R 105 000.00

They made a loss in the first year (R 85 000 - R105 000) = R 20 000.00

- Jonny is in a 26% Tax Bracket
- Amanda is in a 36% Tax Bracket

As i understand it they will get Tax back which they paid over to Sars in the form of Paye throughout the year ?

My question is will sars say R20 000 loss / 2 = R 10 000 loss for Jonny and R 10 000 loss for Amanada ?

Question 1 - Could they say that Amanda incurred all of the losses to claim 36% back on her paye?
Question 2 - Can they claim bond (interm interest as a duductable) whilst the construction was ongoing before the tenant set foot in the apartment ?

Thanking you in advance !

[Dave A]

Profit and loss is distributed in proportion to the share of ownership.

[mango]

Thank you Dave A,

On the point of interim interest whilst the builder builds the property, can we claim that as a deductible seeing that this is solely for the production of income as we would only use this
for rental income?

I'm asking as someone told me we can only start claiming bond interest from the day a tenant sets foot in the unit?

[Dave A]

I answer only what I know with some confidence. I'll say this though -

The one thought that occurred is that if SARS does not allow the deduction, it must then surely be capitalised (relevant for the day one might sell ...).

Hopefully someone else here might know the answer.

[AmithS]

From what I know you can only claim income when a tenant is in place. sars requires a lease to be in place.