tax on profit or loss on investment property

[Andromeda]

Hi Michael

I have enclosed the SARS Guide on ring fencing. Personally I would expect that they will always regard the rentals as separate business activities, because of different acquisition dates, different tenants and different CGIT possibilities.

Each unique activity should end up with a retained income or accumulated loss. The accumulated loss represents expenses that may be offset against and future profit of that activity. If that is not being done then it means that SARS have disallowed an expense. Similarly they should be taxing you on a net income for those unique numbers that result in a profit, equal to what you submitted.

I have sent you a PM with details of who might better assist you.LAPD-IT-G04-Guide-on-the-Ring-Fencing-of-Assessed-Losses-Arising-from-Certain-Trades-Conducted-b.pdf