Results 1 to 4 of 4

Thread: Rental Income - Assets and Liabilities

  1. #1
    Diamond Member Mike C's Avatar
    Join Date
    Apr 2012
    Location
    Umkomaas
    Posts
    2,850
    Thanks
    249
    Thanked 371 Times in 327 Posts

    Rental Income - Assets and Liabilities

    I have a flat that, for the first time, is generating rental income for me. There is no bond owing on the flat.

    I understand that I have to declare the rental income to SARS and have done all the Income minus costs ... there is no problem there.

    What I want to know is - do I have to fill in the Assets and Liabilities section that automatically opens up with this section?

    It is almost as though Rental Income is an addon .... the section reads ... Local Business, Trade and Professional Income (incl. rental income)

    I have only found two specific instances adressing this on the internet. One that says that the Assets and Liabilites secion is only for provisional tax payers, and another which says that it should be filled in, but some people don't.

    Anybody have experience in this matter?
    No act of kindness, no matter how small, is ever wasted. - Aesop "The Lion and the Mouse"

  2. #2
    Silver Member
    Join Date
    Sep 2012
    Location
    Louis Trichardt
    Posts
    334
    Thanks
    58
    Thanked 43 Times in 39 Posts
    Mike,

    If you earn rental income, you are a provisional taxpayer, therefore yes, you have to complete the assets and liabilities part.

    P.S. Did you claim expenses in prior years where you haven't earned income yet? Then at least you will have an assessed loss to use in the next few years.. for example finance charges, repairs and maintenance, etc..

  3. Thanks given for this post:

    Mike C (10-Jul-14)

  4. #3
    Diamond Member Mike C's Avatar
    Join Date
    Apr 2012
    Location
    Umkomaas
    Posts
    2,850
    Thanks
    249
    Thanked 371 Times in 327 Posts
    Hi Dellatjie - thanks for responding. I did not claim in the past because the flat was used by my daughter, but she has moved out, so it is the first time that it has been rented out.

    Perhaps you could help on a question of assets then. My primary residence is joint-owned by my wife. We are married out of community of property (the old ante-nuptial and there is no accrual system). As an asset do I then declare half of the purchase value ... being "my half"?
    No act of kindness, no matter how small, is ever wasted. - Aesop "The Lion and the Mouse"

  5. #4
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,649
    Thanks
    3,305
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Quote Originally Posted by Mike C View Post
    My primary residence is joint-owned by my wife. We are married out of community of property (the old ante-nuptial and there is no accrual system). As an asset do I then declare half of the purchase value ... being "my half"?
    I'm in the same boat, and that's exactly how we do it. Same goes for shared liabilities, like the bond on the property (even though I pay the entire bond instalment). Just as well funds moving between spouses doesn't attract tax, otherwise things could get messy...

  6. Thank given for this post:

    dellatjie (10-Jul-14), Mike C (10-Jul-14)

Similar Threads

  1. Directors Duties and Liabilities in RSA
    By Asterix in forum The Whistleblower Forum
    Replies: 133
    Last Post: 03-Dec-21, 07:04 AM
  2. Replies: 290
    Last Post: 28-Jun-13, 09:31 PM
  3. Replies: 2
    Last Post: 03-Jul-12, 10:16 AM
  4. [Question] Rental Income\Loss
    By AmithS in forum Tax Forum
    Replies: 3
    Last Post: 28-Oct-10, 08:12 AM
  5. REAL Assets...
    By Norri in forum General Business Forum
    Replies: 32
    Last Post: 11-Aug-08, 09:27 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •