Limpopo Property Case Study 6.1
6. Deed of Sale
6.1. Please find the deed of sale attached. The property was bought for R750 000 and was registered on our name 26 November 2013.
6.2. The 1481 Breyer Avenue property was brought for R 1 450 000, and was registered in October 2012 in the taxpayer’s names. A deed search can be obtained to verify the above.
6.3. The full amount of the bond was utilised for the acquisition of both properties.
6.4. No, the bonds was not increased subsequent to the purchase of the Limpopo property.
6.5. Steps taken to transfer the properties into profitable ventures.
6.5.1. Limpopo / 1481 Breyer laan (Flat)
Regarding the rental properties in question, and whether or not it constitute a trade as defined by the Act.
6.5.1.1. Residential accommodation …show more content…
Furthermore, it should be noted that, Section 20A gives no indication as to what should be considered as a “reasonable prospect” or a “reasonable period” for any trade. The facts and circumstances of a trade in one category such as rental will differ from the facts and circumstances of a trade in another, such as farming. Whether there is a reasonable prospect of deriving taxable income within a reasonable period will, therefore, depend on the facts and circumstances of each specific trade. Taxable income in this instance excludes any taxable capital gain. Whilst the prescribed facts and circumstances must be taken into account, other facts and circumstances may also be considered in unique …show more content…
With regards to Leeupoort property. Steps have been made do to the dropped in demand to let out the property for the next 3 (three) years one tenant that will occupy the property for the full period. Furthermore, an escalation in the rent charged has been built in on a yearly basis. The taxpayer will re-view its decision within the three year period whether the property will be rented out for additional years or if the economy allows that the property can again be rented out on a daily basis. Furthermore, a forecast was supplied to SARS as requested that indicated that a profit within the next 5 years is
6.1. Please find the deed of sale attached. The property was bought for R750 000 and was registered on our name 26 November 2013.
6.2. The 1481 Breyer Avenue property was brought for R 1 450 000, and was registered in October 2012 in the taxpayer’s names. A deed search can be obtained to verify the above.
6.3. The full amount of the bond was utilised for the acquisition of both properties.
6.4. No, the bonds was not increased subsequent to the purchase of the Limpopo property.
6.5. Steps taken to transfer the properties into profitable ventures.
6.5.1. Limpopo / 1481 Breyer laan (Flat)
Regarding the rental properties in question, and whether or not it constitute a trade as defined by the Act.
6.5.1.1. Residential accommodation …show more content…
Furthermore, it should be noted that, Section 20A gives no indication as to what should be considered as a “reasonable prospect” or a “reasonable period” for any trade. The facts and circumstances of a trade in one category such as rental will differ from the facts and circumstances of a trade in another, such as farming. Whether there is a reasonable prospect of deriving taxable income within a reasonable period will, therefore, depend on the facts and circumstances of each specific trade. Taxable income in this instance excludes any taxable capital gain. Whilst the prescribed facts and circumstances must be taken into account, other facts and circumstances may also be considered in unique …show more content…
With regards to Leeupoort property. Steps have been made do to the dropped in demand to let out the property for the next 3 (three) years one tenant that will occupy the property for the full period. Furthermore, an escalation in the rent charged has been built in on a yearly basis. The taxpayer will re-view its decision within the three year period whether the property will be rented out for additional years or if the economy allows that the property can again be rented out on a daily basis. Furthermore, a forecast was supplied to SARS as requested that indicated that a profit within the next 5 years is