It is not often that SARS offers tax relief but when it is presented as an option it should be used without delay. Withi
Posted: Mon May 02, 2022 7:21 am
It is not often that SARS offers tax relief but when it is
presented as an option it should be used without delay. Within
Section 13 of the Income Tax Act lies a little gem. This section
offers tax advantages for property investors being able to claim
millions of rands back from SARS. Property buyers can leverage
Section 13 of the Income Tax Act to obtain tax returns from their
buy-to-let property portfolios. The tax write-offs obtainable
through Section 13 come into effect when property investors buy a
minimum of five residential units for rental. Purchasers are then
able to off-set their investment by depreciating the cost of the
units at an accelerated rate of 5% a year over 20 years. Mrs. Vest
Benefit purchased five new residential units at a price of R1 000
000 each and rented them out to earn additional income.
A.You are required to calculate the tax benefit that the
taxpayer will enjoy over a period of 20 years and the equivalent
annual allowance.
B.Briefly discuss the provisions of sections 13 regarding
property investors and describe the requirements to qualify for
such tax incentive
presented as an option it should be used without delay. Within
Section 13 of the Income Tax Act lies a little gem. This section
offers tax advantages for property investors being able to claim
millions of rands back from SARS. Property buyers can leverage
Section 13 of the Income Tax Act to obtain tax returns from their
buy-to-let property portfolios. The tax write-offs obtainable
through Section 13 come into effect when property investors buy a
minimum of five residential units for rental. Purchasers are then
able to off-set their investment by depreciating the cost of the
units at an accelerated rate of 5% a year over 20 years. Mrs. Vest
Benefit purchased five new residential units at a price of R1 000
000 each and rented them out to earn additional income.
A.You are required to calculate the tax benefit that the
taxpayer will enjoy over a period of 20 years and the equivalent
annual allowance.
B.Briefly discuss the provisions of sections 13 regarding
property investors and describe the requirements to qualify for
such tax incentive