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Thread: Claiming tax expense on rental property where no rent was received

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    Claiming tax expense on rental property where no rent was received

    Compliments everyone!

    Can someone advise if one could claim expenses such as interest and municipal rates on a rental property where NO rent was actually received during the period. The property is rightfully in my name as an investment property but tenants simply did not pay their rent, typical scenario of a HIJACKED PROPERTY. In the meantime because the property is bonded the bank still charges interest (IT3b already available) and the municipal also continues to charge for it's services.

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    In theory you can't. Rental income may be reduced by expenses incurred in the production of income, i.e the rental income ....

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    Thanks Andromeda. So there is no such thing as ZERO income where expenses have been incurred towards a legitimate intent to make 'the income'. I would have thought the income amount here is simply ZERO.

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    If it is occupied, it is worth a try to to state the agreed rental, claim the expenses and claim the bad debt which will result in an assessed loss, if allowed.

    It will definitely be audited by SARS, so have the lease agreement and expense schedules ready.

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    Dave A (09-Jan-19)

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    Thank you so much, will certainly give it a try.

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