Rental Income Basics - Tax 101

Episode one of the Rental Income Series
Business contact: [e-mail]
Social Media Links:
Twitter: / andrebothmatax
Important Links:
sars.mylexisnexis.co.za/ - Tax Legislation
www.sars.gov.za/Pages/default... - SARS website
secure.sarsefiling.co.za/app/... - eFiling Login

[@angelabeney6675]

Hi Andre I've just discovered your Channel and I want to say a BIG THANK YOU. You are a great Teacher and make things really easy to understand 🙏🙏🌈🌈

[@AndreBothmaTax]

Thanks so much for the words of encouragement. Happy that you`re here!

[@cebim7251]

Hi. This is clear and understandable. How does it work when the rental income goes from tenant ,deposited in agent account, then to owner account, which goes to the bond debit order.

[@irri4642]

Very helpful, thanks Andre 👌

[@AndreBothmaTax]

Glad I could help

[@wjg203]

Once you understand investment/rental property taxes, you wil understand why it's the best investment one can get.

[@TyNel55]

Can you explain a Tax directive for commission earners.

[@johanlourens]

Hi Andre, I have an apartment I'm renting out for AirBnB. Can I deduct the internet costs and the parking space I'm renting in the building?

[@incognito9909]

Hi Andre, I hope you are keeping well. I would like ask. I'm a 9-5 individual and decided to to take a risk and buy a property which I'll rent it out. I am clueless when it comes to tax implications as I am the individual for the property, I have not registered an entity.What should I do for tax purposes since I'm expecting a loss?

[@AndreBothmaTax]

You should declare the loss on your tax return

[@Riatheone]

Hi Andre, If I own a flat which Im still paying bond for, and I have a rented out the flat on a long term lease agreement with a family for them to dwell, do I have to Pay VAT or register as a Provisional Tax Payer???? Please Help Me Understand This Dear 🙏🏾 As I Am Clueless But Want To Be On The Right Standing With SARS🙏🏾.

[@AndreBothmaTax]

SARS will indicate whether or not you're a provisional taxpayer. There is no VAT on residential rentals

[@Riatheone]

@@AndreBothmaTax Thank You So Much For The Reply.

[@senzodlamini3742]

You are good bro, following your videos from Swaziland

[@mTuber9079]

If SARS flags me for an Audit. What supporting documents will I need to submit to them for both the rental income and capital gains on the sale of my property?

[@AndreBothmaTax]

You have to submit: 1. A rental income statement 2. A CGT calculation for the sale of the property

[@mTuber9079]

Thanks. It's Great to have confirmation! 😁.

[@andrew1234856]

To be able to pay tax, does this property have to be under a company?

[@AndreBothmaTax]

No, it doesn't need to be owned by a company.

[@stephanvanzyl7303]

Andre, regarding VAT registration for residential rental income... Residential rental income is exempt from VAT.. So should a company still register for VAT if it's the ONLY income that is received in the company? Sec 12(c) says you also can't claim vat on the expenses..? Am I on the right track or not really?

[@AndreBothmaTax]

If the company's sole enterprise is that of long term residential letting, then the company should not register for VAT. It's an exempt supply.

[@pooveshinnaicker4177]

Great video thank you

[@AndreBothmaTax]

Thanks!

[@AirbnbRentalEmpire]

Informative stuff, keep it up!

[@shaheensewparsadhthakur3284]

Thanks for the video. I wanted to find out, what if I hire a maid to clean or a manager to manage the daily operations at the rental property, are their annual wages deductible from the taxable income?

[@AndreBothmaTax]

Hi Shaheen - it's faily common to pay for a cleaner and/or management fees to run the rental property so it would be deductible yes. Just be careful, as rental properties often come under severe SARS scrutiny if they make losses.

[@pooveshinnaicker4177]

What if you run a loss from renting out a property, how are yoj taxed then

[@AndreBothmaTax]

The loss gets deducted from your taxable income.

[@nisihangwemahuwa5414]

How to object if rent income was wrongly included In my return of which the rent producing property was awarded to my former spouse during divorce settlement?

[@zhixiangtu6013]

Thank you for the great video. Are all these deductions applicable to companies only or to individual investors as well? And when the profit ends up negative after all these deductions, can that negative profit reduce my taxable income from salary?

[@JLOUW-bv9dt]

Gaan dit beter wees om wins te maak deur huur inkomste as n individu of om n mpy te registreer en dan die huis te huur deur jou eie maatskappy?

[@progressaddict8984]

Great video.. Wanted to know how do we differentiate between Residential and Commercial accommodation to determine if the rent is exempt from vat or not?

[@AndreBothmaTax]

Dwellings are exempt from VAT and they would be the "residential accommodation". There is normally a long term lease in place as well. Commercial accommodation though, is boarding, lodging, short term, regularly supplied with additional goods and services such as dstv, internet, groceries etc and there is no lease contract. This type of letting will have VAT if the enterprise is registered for it. Examples may include: Hotels, hostels, boarding houses, bnb's, guest houses, holiday homes.

[@progressaddict8984]

Hmm so how would you classify student accommodations because most of them are at a dwellings but they come with those additional services/goods you mentioned for commercial accommodation?

[@AndreBothmaTax]

@@progressaddict8984 There were court cases about this, but I can't remember the exact detail unfortunately. I can get the detail of it and send it to you if you want.

[@progressaddict8984]

I would really appreciate that if it's not too much trouble thank you.

[@amanjumna]

Thanks for the video. Hope you can cover the scenario where a property was initially used a primary residence and then, after a few years, is used solely for rental income. Would this still qualify for all the usual tax deductions and how would CGT be determined upon disposal. All the best.

[@AndreBothmaTax]

I'll cover this in a Capital Gains Tax series I'm planning

[@leshegorapolai]

@@AndreBothmaTax Hey… Have you covered this yet?

[@segametsijanerakomane5547]

Hi there. Thanks for the great video. Please advise what is listed as depreciation from a rental property. Thank you

[@AndreBothmaTax]

If you bought furniture for the rental property, then those assets can be depreciated.

[@madelapales9595]

I have a question regarding the entry of Vat.. can u help me?☺️ Land rental expense 95,000 Vat12% Expanded tax 5% My Answer Land rental 95,000 dr Output tax 11,400 dr Expnded tax 4,750 cr Cash in bank 101,650 cr Imy answer is correct or not?? Thank you

[@kerri-leighacutt4847]

Thank you for the very interesting video. Please can you do company tax for rentals and house flipping?

[@muhammeddawood6099]

Can you please do a video on how does the primary rebate effects personal tax return calculation

[@AndreBothmaTax]

I can make a video like that yes.

[@warrenski]

Thanks for your awesome video Andre, very clearly presented. Looking forward to part 2. Just a quick one for you, you use two abbreviations in one of your slides: ICOP and ITPOI. Can you elaborate on those please?

[@AndreBothmaTax]

ICOP - In community of property ITPOI - In the production of income

[@warrenski]

@@AndreBothmaTax Doh of course! Thanks for clarifying