How to complete the rental income section of your SARS ITR12
To declare rental income on your SARS ITR12, add up your gross rent, subtract allowable deductions (rates, levies, bond interest, repairs, insurance and agent fees), and declare the net result under source code 4210 (profit) or 4211 (loss). Keep supporting records for five years. BodmasBooks tracks all of this through the year and generates a ready-to-file ITR12 rental tax pack automatically — from R99/month.
This guide is general information, not tax advice. For complex situations, consult a registered tax practitioner.
The rental income section, step by step
1. Add up your gross rental income
Total all rent received for the tax year across the property, including any recoveries you charge tenants. This is your gross income before any deductions.
2. Capture every allowable expense
Record each deductible cost by category — rates, levies, bond interest, insurance, repairs, agent fees, security and garden services, and tenant advertising. Keep the invoice for each.
3. Work out net profit or loss
Subtract total allowable expenses from gross income. A positive figure is declared under source code 4210; a loss under 4211. SARS adds the net result to your taxable income.
4. Check ring-fencing (s20A)
If you are a higher-income taxpayer with a rental loss, section 20A may ring-fence that loss. Keep clean records so the position is clear, and get advice if your situation is complex.
5. File on eFiling and keep records 5 years
Enter the figures in the “Local rental income” section of your ITR12 on SARS eFiling, and retain all supporting documents for at least five years in case of verification.
Deductible rental expenses (SARS)
These are the costs you can typically claim against rental income. Capital improvements are not deductible here (they affect capital gains later).
Let BodmasBooks do the ITR12 for you
Instead of rebuilding this every tax season in a spreadsheet, BodmasBooks keeps it current all year:
- Generates a SARS-ready ITR12 rental pack with the right source codes and totals.
- Captures and categorises every deductible expense as you go.
- Turns year-end from weeks of admin into minutes.
- Stores your supporting records POPIA-safely for the 5-year rule.
Frequently asked questions
How do I complete the rental income section of my SARS ITR12?+
Declare your gross rental income and claim allowable deductions (rates, levies, bond interest, repairs, insurance, agent fees) to arrive at your net rental profit or loss, which SARS adds to your taxable income. In BodmasBooks these figures are tracked through the year and produced as a ready-to-file ITR12 rental tax pack automatically.
What source code is used for rental income on the ITR12?+
Rental profit is declared under source code 4210 and a rental loss under source code 4211 in the “Local rental income from the letting of fixed property” section of the ITR12. You capture gross income and each expense category, and SARS calculates the net figure.
What expenses can I deduct from rental income for SARS?+
You can deduct expenses incurred in producing the rental income, including municipal rates and taxes, levies, bond/mortgage interest (not the capital portion), property insurance, repairs and maintenance, managing-agent or letting-agent fees, garden and security services, and advertising for tenants. Improvements are capital and are not deductible against rental income.
How do I generate a rental income statement for SARS?+
List gross rent received, then subtract each allowable expense category to show the net rental profit or loss for the tax year. BodmasBooks produces this statement automatically from your recorded income and expenses, so you have a SARS-ready rental schedule without building a spreadsheet.
What is ring-fencing (section 20A) of rental losses?+
Section 20A can “ring-fence” an assessed loss from a rental property for certain higher-income taxpayers, meaning the loss can only be set off against future income from that same trade rather than against your other income. Whether it applies depends on your circumstances — keep accurate records so the position is clear, and consult a tax practitioner if unsure.
How long must I keep my rental records for SARS?+
Keep supporting documents — invoices, bank statements, lease agreements and expense receipts — for at least five years from the date of submission, in case SARS verifies your return. BodmasBooks stores these records digitally and POPIA-safely so they are always retrievable.
Do I need an accountant to file my rental income tax?+
Many individual landlords file themselves once their records are in order. BodmasBooks keeps SARS-ready books year-round and generates the rental tax pack, which makes self-filing on eFiling straightforward — though complex situations (ring-fencing, multiple entities) may still warrant a tax practitioner.
SARS season without the spreadsheet
BodmasBooks keeps your rental books SARS-ready all year and produces your ITR12 pack in minutes. Free for 30 days, from R99/month.