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 !