Investing in property is one of the most proven ways to build long-term wealth in South Africa. But here’s the catch: if you structure it wrong, SARS will take more than its fair share.
1. Declare All Rental Income (No Exceptions)
SARS requires that you disclose all rental income on your ITR12, including:
Monthly rent
Lease premiums
Parking and storage fees
Utility recoveries
Short-term or Airbnb rentals
💡 Why it matters: SARS has new AI-driven audit tools that flag undeclared income fast. Non-disclosure can lead to penalties, interest, and even audits.
2. Claim Every Allowable Deduction
Any expense directly related to earning rental income can reduce your taxable amount. That means more profit for you.
Deductible expenses include:
Bond interest (not the capital repayment)
Rates, taxes, and levies
Building insurance
Property management or agent fees
Repairs and maintenance
Advertising, gardening, and security services
💡 Pro Tip: Keep receipts, invoices, and proof — SARS may request them.
3. Apply Pro-Rata Deductions for Partial Rentals
If you rent out only part of your property (like a granny flat or a single room), you’ll need to proportion your expenses.
Formula:
% of property rented × number of days rented ÷ 365
Example: If 28% of your home is rented for 240 days, you can deduct (28% × 240/365) of shared expenses.
4. Depreciate Movable Assets
If you’ve furnished your rental or added upgrades, you can claim depreciation over time.
Qualifying assets include:
Furniture
Appliances
Inverters & batteries
Curtains, blinds, and fittings
💡 If an asset costs less than R7,000, you may deduct the full cost in the first year.
5. Use the Section 13sex Building Allowance
Own five or more new residential units (flats, townhouses, etc.)? You could claim:
5% of the building cost (excluding land) annually for 20 years
Up to 10% per year for qualifying low-cost housing
💡 This is a powerful long-term wealth strategy for property developers and portfolio landlords.
6. Plan Ahead for Capital Gains Tax (CGT)
When you sell your investment property, CGT applies to your profit:
40% of the gain is added to your taxable income
R40,000 annual CGT exclusion applies
If it’s your primary residence, the exclusion may go up to R2 million
💡 Keep detailed records of your purchase price, transfer costs, and capital improvements — these reduce the taxable gain when you sell.
The Bottom Line
Property is a long game.
Structure your portfolio right, claim what’s yours, and you’ll keep more cash to reinvest.
At Finance Sense, we don’t just file your taxes — we help you build a business and a life that’s financially solid and wildly free.
1. Declare All Rental Income (No Exceptions)
SARS requires that you disclose all rental income on your ITR12, including:
Monthly rent
Lease premiums
Parking and storage fees
Utility recoveries
Short-term or Airbnb rentals
💡 Why it matters: SARS has new AI-driven audit tools that flag undeclared income fast. Non-disclosure can lead to penalties, interest, and even audits.
2. Claim Every Allowable Deduction
Any expense directly related to earning rental income can reduce your taxable amount. That means more profit for you.
Deductible expenses include:
Bond interest (not the capital repayment)
Rates, taxes, and levies
Building insurance
Property management or agent fees
Repairs and maintenance
Advertising, gardening, and security services
💡 Pro Tip: Keep receipts, invoices, and proof — SARS may request them.
3. Apply Pro-Rata Deductions for Partial Rentals
If you rent out only part of your property (like a granny flat or a single room), you’ll need to proportion your expenses.
Formula:
% of property rented × number of days rented ÷ 365
Example: If 28% of your home is rented for 240 days, you can deduct (28% × 240/365) of shared expenses.
4. Depreciate Movable Assets
If you’ve furnished your rental or added upgrades, you can claim depreciation over time.
Qualifying assets include:
Furniture
Appliances
Inverters & batteries
Curtains, blinds, and fittings
💡 If an asset costs less than R7,000, you may deduct the full cost in the first year.
5. Use the Section 13sex Building Allowance
Own five or more new residential units (flats, townhouses, etc.)? You could claim:
5% of the building cost (excluding land) annually for 20 years
Up to 10% per year for qualifying low-cost housing
💡 This is a powerful long-term wealth strategy for property developers and portfolio landlords.
6. Plan Ahead for Capital Gains Tax (CGT)
When you sell your investment property, CGT applies to your profit:
40% of the gain is added to your taxable income
R40,000 annual CGT exclusion applies
If it’s your primary residence, the exclusion may go up to R2 million
💡 Keep detailed records of your purchase price, transfer costs, and capital improvements — these reduce the taxable gain when you sell.
The Bottom Line
Property is a long game.
Structure your portfolio right, claim what’s yours, and you’ll keep more cash to reinvest.
At Finance Sense, we don’t just file your taxes — we help you build a business and a life that’s financially solid and wildly free.
1. Declare All Rental Income (No Exceptions)
SARS requires that you disclose all rental income on your ITR12, including:
Monthly rent
Lease premiums
Parking and storage fees
Utility recoveries
Short-term or Airbnb rentals
💡 Why it matters: SARS has new AI-driven audit tools that flag undeclared income fast. Non-disclosure can lead to penalties, interest, and even audits.
2. Claim Every Allowable Deduction
Any expense directly related to earning rental income can reduce your taxable amount. That means more profit for you.
Deductible expenses include:
Bond interest (not the capital repayment)
Rates, taxes, and levies
Building insurance
Property management or agent fees
Repairs and maintenance
Advertising, gardening, and security services
💡 Pro Tip: Keep receipts, invoices, and proof — SARS may request them.
3. Apply Pro-Rata Deductions for Partial Rentals
If you rent out only part of your property (like a granny flat or a single room), you’ll need to proportion your expenses.
Formula:
% of property rented × number of days rented ÷ 365
Example: If 28% of your home is rented for 240 days, you can deduct (28% × 240/365) of shared expenses.
4. Depreciate Movable Assets
If you’ve furnished your rental or added upgrades, you can claim depreciation over time.
Qualifying assets include:
Furniture
Appliances
Inverters & batteries
Curtains, blinds, and fittings
💡 If an asset costs less than R7,000, you may deduct the full cost in the first year.
5. Use the Section 13sex Building Allowance
Own five or more new residential units (flats, townhouses, etc.)? You could claim:
5% of the building cost (excluding land) annually for 20 years
Up to 10% per year for qualifying low-cost housing
💡 This is a powerful long-term wealth strategy for property developers and portfolio landlords.
6. Plan Ahead for Capital Gains Tax (CGT)
When you sell your investment property, CGT applies to your profit:
40% of the gain is added to your taxable income
R40,000 annual CGT exclusion applies
If it’s your primary residence, the exclusion may go up to R2 million
💡 Keep detailed records of your purchase price, transfer costs, and capital improvements — these reduce the taxable gain when you sell.
The Bottom Line
Property is a long game.
Structure your portfolio right, claim what’s yours, and you’ll keep more cash to reinvest.
At Finance Sense, we don’t just file your taxes — we help you build a business and a life that’s financially solid and wildly free.
1. Declare All Rental Income (No Exceptions)
SARS requires that you disclose all rental income on your ITR12, including:
Monthly rent
Lease premiums
Parking and storage fees
Utility recoveries
Short-term or Airbnb rentals
💡 Why it matters: SARS has new AI-driven audit tools that flag undeclared income fast. Non-disclosure can lead to penalties, interest, and even audits.
2. Claim Every Allowable Deduction
Any expense directly related to earning rental income can reduce your taxable amount. That means more profit for you.
Deductible expenses include:
Bond interest (not the capital repayment)
Rates, taxes, and levies
Building insurance
Property management or agent fees
Repairs and maintenance
Advertising, gardening, and security services
💡 Pro Tip: Keep receipts, invoices, and proof — SARS may request them.
3. Apply Pro-Rata Deductions for Partial Rentals
If you rent out only part of your property (like a granny flat or a single room), you’ll need to proportion your expenses.
Formula:
% of property rented × number of days rented ÷ 365
Example: If 28% of your home is rented for 240 days, you can deduct (28% × 240/365) of shared expenses.
4. Depreciate Movable Assets
If you’ve furnished your rental or added upgrades, you can claim depreciation over time.
Qualifying assets include:
Furniture
Appliances
Inverters & batteries
Curtains, blinds, and fittings
💡 If an asset costs less than R7,000, you may deduct the full cost in the first year.
5. Use the Section 13sex Building Allowance
Own five or more new residential units (flats, townhouses, etc.)? You could claim:
5% of the building cost (excluding land) annually for 20 years
Up to 10% per year for qualifying low-cost housing
💡 This is a powerful long-term wealth strategy for property developers and portfolio landlords.
6. Plan Ahead for Capital Gains Tax (CGT)
When you sell your investment property, CGT applies to your profit:
40% of the gain is added to your taxable income
R40,000 annual CGT exclusion applies
If it’s your primary residence, the exclusion may go up to R2 million
💡 Keep detailed records of your purchase price, transfer costs, and capital improvements — these reduce the taxable gain when you sell.
The Bottom Line
Property is a long game.
Structure your portfolio right, claim what’s yours, and you’ll keep more cash to reinvest.
At Finance Sense, we don’t just file your taxes — we help you build a business and a life that’s financially solid and wildly free.
