Best tax write offs when investing in property in South Africa (tax free wealth through rental)

Earning income from rental property comes with many tax benefits. This is the same in South Africa and all over the world. You can write many of your expenses off against your income and could end up with not only reduced tax, but SARS could actually give you a refund if you do this correctly.
Lebogang is a qualified tax and finance practitioner and he shares the basics of what you can legally deduct to reduce your tax or to even get a refund.
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[@hydrophobicgoldfish]

Good video, great topic...but please get some propers microphones. Would make the viewing more pleasant

[@MyPropertyBusiness]

Thanks for the feedback Dale. We have improved on audio based on feedback. Please do let us know if the audio is still bad on the new videos :-)

[@jonahbenisrael4602]

The Keys dropped here👑❤

[@MyPropertyBusiness]

Love this comment... 🤣 Glad you enjoyed it!!

[@mariannatheron7363]

THANK YOU SO MUCH YOU GUYS!!!!

[@MyPropertyBusiness]

you are welcome!

[@siyandamngoma666]

Great insights on the video, I have a question. Can i still claim these deductions(levies, rates, bank interest charges etc) if my rental properties are under a company and not on my personal name? Thank you.

[@MyPropertyBusiness]

Even better yes

[@paullondon7963]

Really informative video. I have a question - if in a financial year your expenses are more than your profit (you make a loss), will SARS give you a tax rebate?

[@MyPropertyBusiness]

Depends. If you paid tax during the year in your business or personal capacity (as you were working) then yes. If you had no other income then the loss will be rolled over to the next year. So then you get a reduction in tax the next year when you make a profit

[@sellomolekwa2599]

Great podcast, thank you very much for the information. Would you advise an individual who has put an offer on an investment property to change from personal to company? Or rather to continue with the process and thereafter when the property is registered change from personal to company?

[@MyPropertyBusiness]

Sello, depending on what you want to do with it, yes that can work

[@bamideleolora6923]

Hello, as a foreigner, where can I buy land without yearly property taxes, building permit, and zoning? What are some places? Who should I contact?

[@MyPropertyBusiness]

You can't buy and develop land without the things unfortunately

[@BmanBoka]

Hi TJ, very informative thanks. Just a question on what does one pay for to transfer your property to a company?

[@MyPropertyBusiness]

You need to engage an attorney who can give you options vs costs vs cost of property... Check for Elize's details in description

[@monicamudhari6321]

I just need someone to explain what is the first step before buying your first property or anything. Is it opening a company?

[@MyPropertyBusiness]

education first then have an investment structure (company) that will work for you

[@siphamandlamsibi9619]

I’ve been thinking. Do the properties need to be in a company name before I can start running my property portfolio as a business? What if I simply open a business account, receive rental income and pay the expenses from the business account? Isn’t that a business already that can pay max 28% tax? Do my properties need to reflect on my company’s balance sheet before I can be able run my property portfolio as a business?

[@MyPropertyBusiness]

It sounds like a simple question but it has a more complex answer. You can sign a rental agreement with yourself and your company. But that has other implications. If the property is still new and "making a loss" you don't need to. You can also do an installment sale with yourself at a low price.. There are many answers to this all with its own pros and cons

[@glesendamettelerkamp4960]

Is it possible to claim retrospectively if you owned a rental property and for a few years you never claimed for some of these benefits?

[@MyPropertyBusiness]

Yes and no - the best person to chat with would be your CA / Tax consultant to look at you specific issue and how SARS would also look at it... Both as procs and cons...

[@imorgenmputle5248]

Hi hi, can I still include a petrol receipt for example when I travel to meet my tax consultant ?

[@MyPropertyBusiness]

yes you should be able to, but always clear it first with your tax adviser as each person's circumstances are different.

[@alexdavid2133]

Hi TJ. How do we get hold of your book?

[@MyPropertyBusiness]

Hi Alex, you can get it for Free www.tauraijack.com and you will only pay for delivery.

[@ravij4646]

Hi, so if i am a director of Pty Ltd with 100% shares and i buy a house for my primary residential the only expense i can deduct is the one i am paying to bank every month as a bond repayment which includes interest as well or only the interest part? and any apartment i buy later can have all deduction bond repayment, interest, rates/taxes, levies etc.

[@MyPropertyBusiness]

Only the interest component. However if your primary residential property is in the name of the company then you can pay the company rent (you determine the rental amount), the company can then pay expenses - which are all deductable, and that (might) lead to a loss which will end up in a tax benefit for the company.

[@MyPropertyBusiness]

** disclaimer I am not a tax adviser so you should get professional advise on this as well....

[@ravij4646]

@@MyPropertyBusiness Thank you very much, i should start investing in property :)

[@audioproguy1470]

Hey man. Great podcast. Is there anyway I can get hold of you via email?

[@MyPropertyBusiness]

[e-mail]