[Question] Statement of Income for SARS

[Frad]

Sars wants Me to upload supporting documents for 2 rental properties , It says statement of income and breakdown of expenses required , What does statement of income mean ?.( Tenant pays me the rent and that is all ) , Please help . Thanks Frad

[Mike C]

Hi Frad. I would suggest that you draw up a "statement" listing each month of the tax year showing the amount received and any allowable expenses deducted for that month.

SARS may require proof of expenses if they consider them excessive. So you can either include the invoices up front or wait for them to make a specific request once they have received the statement.

example ... Month : Rental Received : Repairs & Maintenance : Rates : Levy : Total Profit

Expenses that may be deducted from taxable income include:

rates and taxes
bond interest
advertisements
agency fees of estate agents
insurance (only homeowners not household contents)
garden services
repairs in respect of the area let and
security and property levies

[Frad]

Hello Mike , Thanks very much , I am going to do exactly what you say and Fire it off to sars , these 2 properties have never made a loss in over 25 years and make a large profit . What is your opinion on this , Every year I make a large donation to a PBO ,but as soon as I press that file button ,back comes my it34 with Selected for audit ever year? , getting annoyed , Do you think Sars computer ,that when it sees a PbO donation has audit as a Default . I think so .Thanks again Frad

[dellatjie]

@Frad, I think the fact that you are being audited every year has more to do with the fact that you earn rental income.