Property has been a popular investment option among many South Africans. One of the other advantages of being a tax payer under this investment operation is that you get a tax deduction on the cost of your newly acquired property.
That's Thabang, he recently bought 5 properties that were new and unused from a well known property developer.He is already renting to his tenants who are predominantly students. Thabang's properties qualify for a tax deduction of 5% on the cost he incurred on acquisition of the properties. Thabang paid R350 000 for each property. Thabang can claim R87 500 as a deduction and reduce the amount he has to pay over to SARS.
Example:
5%* R1 750 000 = R87 500
For advice on taxes for property please contact Simphiwe on 071 534 8873
Comments
Post a Comment