FINANCE
When you earn income
If you earn income from any source other than employment , you must pay provisional tax . This includes income from renting out your property . Provisional tax requires that you estimate your non-employment earnings for the year and pay tax on half of those earnings at the end of August , with the balance due at the end of February in that tax year . When you declare your total annual income , any provisional tax paid during the year is deducted from your assessed tax . Just estimating what you ’ ll earn in the coming year can be stressful and calls for the services of a professional tax advisor or accountant .
Starting out right
The sheer complexity of tax on property and the methods of managing that obligation cannot be covered fully in a single article . For this reason , it is essential to carefully plan your property purchases around both financing and tax . Especially for high value property investments , such as total property values exceeding R2 million , you definitely need to engage the services of estate management and tax planning professionals .
66 REI MAGAZINE AUGUST