Looking for the best tax tips when selling your property in Johannesburg? Look no further. Nobody likes to find out they missed a chance to save potentially thousands of dollars while diversifying your portfolio. If you’re selling your property, it is well worth your while to follow a system to organize your business paperwork. You should always work with a tax professional experienced with investment properties and put in the work required to take advantage of the tax benefits available when you file your return.
To ensure you keep everything you’re entitled to by law, and realize the most in savings on your taxes, take a moment to examine these four tax tips for property sellers in Johannesburg.
Tax-Deferred or Tax-Free Investments
Our first tax tip for sellers in Johannesburg is special savings accounts for real estate investors. These accounts help you save money when you sell. As a result, you may defer the taxes or have zero tax liability. So while there are plenty of rules and regulations, you can grow your real estate investment portfolio while enjoying more of the returns on your investments.
Capital Gains
When you sell an investment and make a profit, this is known as capital gains, which brings us to our next tax tip for property sellers in Johannesburg. Using the exemption for capital gains, you could pay no gains tax on the sale. The amount of capital gains on the property is dependent on the time you’ve owned the property and your filing status. There are limits on these exemptions. You must stay on top of current laws and work with a professional to avoid errors and realize the best savings.
Deductions
You can deduct the costs involved in selling your property. Among the allowable expenses for homeowners are deductions for your property taxes and any interest paid on your mortgage debt. Check current tax laws for the current limits on these deductions. Be sure to follow guidelines in determining if your expenditure is for routine maintenance or a repair, while both are deductible. They are treated differently in the tax laws. Improvements required for the sale of the home may be deductible. Watch your timing on this expense. Carefully tracking expenses will help with this tax tip for property sellers in Johannesburg, allowable deductions.
Depreciation
Property sellers in Johannesburg can deduct depreciation, which is the loss of value to the structure over time.
The experienced professionals at Quick Buy Properties work full time to keep on top of any changes that affect property sellers in Johannesburg. In addition, at Quick Buy Properties, let us show you how these tax tips add up to help provide the best income for the properties we manage. And if you’re you looking for an investment property? Quick Buy Properties has a steady inventory available.
Why not find out how we can help you build your investment portfolio in Johannesburg? We’re happy to answer any questions with no obligation. Contact Quick Buy Properties at 010 9000 703 today!