If you’re a taxpayer with rental income, we’re guessing your auto assessment “rent” a shiver up your spine

Many South African taxpayers have already been auto assessed (read more here on SARS’s nation-wide, imposed auto assessments.)

While some say this is stress- and time-saving, others face the exact opposite problem. If you declare rental income and claim back on its deductibles (or other deductibles like that Udemy course or your client-appreciation gifts, for that matter) you’re probably the latter.

Rent’s due. But your usual refund isn’t ... Why?

Taxpayers with rental income have always had a unique set of challenges and opportunities when it comes to filing their taxes.

But things just got more challenging. Our team has already helped confused clients whose auto assessments did not include their rental income. Or all the deductible expenses associated with it, like property management, repairs, garden service and even travel expenses from maintaining the property.

“The auto assessments are often incorrect or [they’re] missing details.”– Newzroom Africa

The result? Potentially large financial losses.

And in this economy, “aint nobody got time for that!”

What’s the “lease” you can do?

SARS’s knowledge of standard, non-provisional taxpayer information, like IRP5s and third-party details, is often quite good. But when it comes to a non-standard source of income – your rental income – it often misses the finer points.

Now, more than ever before, it is essential that taxpayers with rental income review their assessments manually. That way, you claim on every expense you can.

But it’s even more important than making sure you get the refund you deserve. Tax law around rental income can be treacherous.

Evading “paying tax on your rental income will get you into deep financial water. Rental agents are obligated to provide SARS with a record of the rental income received and paid over to landlords. As a result, it’s very easy for SARS to find any discrepancies in a landlord’s tax return. If you’re found guilty of tax evasion after an audit, you could be facing a hefty penalty or worse – imprisonment.” Read more here.

Don’t let audit stress live rent-free in your head

Our team’s personalised expertise includes knowing the latest tax regulations and how they affect each individual’s situation

Whether it’s depreciation, mortgage interest deductions, repairs, or travel expenses, a tax consultant identifies all the deductions that help offset the tax you’re legally obliged to pay on your rental income.

Not paying that tax is a risk you can’t afford. And not getting the refund that helps balance it out is a right you shouldn’t surrender.

Time to rent a tax nerd? Contact us today and get that auto assessment corrected ASAP.

Landlords, ever rented out a property to a cat-lover? This joke’s for you:

My wife asked me what to do about renting a property to a couple who own a cat.

I shrugged and said, “I dunno, urine charge.”

PS If you know of someone with shivers up their spine over their auto assessment, why not share this article with them?If you’re a taxpayer with rental income, we’re guessing your auto assessment “rent” a shiver up your spine

Many South African taxpayers have already been auto assessed (read more here on SARS’s nation-wide, imposed auto assessments.)