Every rand of legitimate expense you fail to claim is a rand of tax you overpay. South African landlords routinely miss deductions simply because they didn't track them. Here are ten to watch for.
1. Bond interest
The interest portion of your monthly bond repayment is deductible — but not the capital portion. Your bank's annual interest certificate gives you the exact figure.
2. Rates and taxes
Municipal rates and taxes on the rental property are fully deductible for the period it was let.
3. Levies
If the property is in a complex, the monthly levy is deductible.
4. Insurance
Building insurance and landlord-specific cover (such as rental-protection insurance) qualify.
5. Repairs and maintenance
Fixing a geyser, repainting, plumbing repairs and similar work to restore the property are deductible. Upgrades that improve the property are capital and treated separately.
6. Managing agent fees
Commission and management fees paid to a rental agent are deductible.
7. Advertising
Costs to find a tenant — listing fees, photography, advertising — all count.
8. Accounting and bookkeeping fees
Fees for preparing your rental accounts and tax return are deductible, including software subscriptions used to manage the property finances.
9. Security
Monitoring and armed-response costs for the rental property are deductible for the rental period.
10. Garden and cleaning services
Where you pay for upkeep of the let property, those costs qualify.
The catch: you must be able to prove it
SARS can ask for supporting documents. A shoebox of receipts is a liability; a categorised, per-property record is an asset. BodmasBooks captures each expense against the right property and category as you go, with the paperwork attached — so at filing time your deductions are complete and defensible. Try it free for 30 days.
General information only, not tax advice. Speak to a registered tax practitioner about your situation.
