In South Africa, Tourism Month is usually celebrates as a sign of impart that the industry makes to economy of the country. This celebration is usually held in September.
In 2009 the tourism industry in South African Tourism has contributed more or less R67.990m to the country’s economy as The Western Cape Tourism MEC, Alan Winde said. As reported that people who has property take that advantage of tourists by renting their homes with ranging prices offer. It ranges between a few hundred rands per day to several thousands of rands. That’s so profitable.


The renting property income tax implication should be noticed

To achieve that goal, we should know the “gross income” of the total amount of rental made should be stated and will be taxed marginally. While the non capital expense incurred during the production of all this income must be deductible. These include the interest on bond, commissions that is paid to the rental agents, water and rates or levies over the period let, electricity, and also the fees paid to a char or cleaning service as well.
The appointing of all such expenses is to cover the period to which the trade of letting relates.

The not inconsequential cost of insurance should exist too. The cost of this insurance is related to the period in which the property was let is deductible. If we think from that point, we must remember it seems that the insurance of any content of that rented home will substantially increase due to the commercial use of the property.

Here, taxpayers should sensible that Income Tax Act contains a ring-fencing provision in section 20A where net rental losses are declared. But it is depends on the circumstances and may or may not be applicable. The effect where it is applicable is that it prohibits the set off of these rental losses against the taxpayer's other income.

While the primary residence exclusion of R1.5m on any capital gains made would be reduced pro-rata will be done if someone lets out one's primary residence in order to take into account the rental activities.

If someone who rent a property thinking of escaping to pay tax on the: It should be remember that rental agents compulsory to give a document to SARS showing the rent collected and paid over to a landlord so that SARS could look out for that income on the landlord's income tax return.