Three ideas for a better tax return

Filing season opens on the 1st July 2016 and it’s too late to do anything about this past tax year.

When you know before you complete the return what to expect, that means you are on top of your tax return. Tax planning should take full advantage of all options before the end of the tax year in February.

Completing the tax return then becomes a formality.

Here are some ideas to work on before February next year.

Medical aid

If your medical aid saving account runs out during the year, keep on sending the medical bills to your medical aid company. They tally the expenses for you on your tax certificate as not being paid by the scheme. This amount is claimable on your return after certain limits. This will save you keeping records as proof for SARS.

Retirement contributions

This year you can deduct up to 27,5% of the contributions made towards your retirement funds against your taxable earnings.

This is a huge opportunity to get more into your retirement savings at less cost. You effectively get back what ever your marginal tax percentage is.

This means that, if you pay 41% tax then you receive 41 cents for every rand you save. You can make a top up to the maximum limit before the end of February 2017.

Capital gains tax If you are planning to sell off an investment such as a unit trust or gold coins, then take full advantage of your exemption on capital gains tax by selling off your assets over different tax years.

You could sell before the end of February 2017 and then in March 2017, and this way the disposal of the assets gets a double deduction. The current inclusion rate on CGT is R40 000 per annum.

You should e-file your return before the 25th November 2016.

Listen to the audio for more information

Read more from Paul Roelofse at www.investforlife.co.za


This article first appeared on 702 : Three ideas for a better tax return


Recommended

by NEWSROOM AI
Read More
[LISTEN] New Visa regulations could change the face of South African tourism

[LISTEN] New Visa regulations could change the face of South African tourism

Lecturer at TUT's Dept of Tourism, Unathi Henama says that the tourism sector is at the center of the economic policies in SA.

TV presenter chats about his faith, and the role it played in creating an NGO

TV presenter chats about his faith, and the role it played in creating an NGO

Co-founder of Simunye, Danilo Acquisto, chats about how his Christian faith played a role in the conception of his initiative.

[LISTEN] Combating seasonal allergies and hay fever

[LISTEN] Combating seasonal allergies and hay fever

#WeekendBreakfast host Africa Melane chats to Professor Jonny Peter about the benefits of Rooibos tea in alleviating allergies.

Local movie, 'Die Ellen Pakkies Storie', gets noticed for all the right reasons

Local movie, 'Die Ellen Pakkies Storie', gets noticed for all the right reasons

In the movie review, producer of 'Die Ellen Pakkies Storie', Paulo Areal chats about the support they've received from making the movie.

'I'm very excited to reintroduce myself to the people' - Asanda Mqiki, musician

'I'm very excited to reintroduce myself to the people' - Asanda Mqiki, musician

Jazz vocalist Asanda Mqiki chats to #WeekendBreakfast host Africa Melane about the challenges she faced in her 1st debut album.

Study shows growing incidence of heart diseases in stay-at-home dads

Study shows growing incidence of heart diseases in stay-at-home dads

Spokesperson for Pharma says that stay-at-home dads face stigma due to social norms surrounding their role as caregiver.

Popular articles
SA braces for horrific fuel price increases as oil hits 4-year high

SA braces for horrific fuel price increases as oil hits 4-year high

It's monstrous! The Money Show’s Bruce Whitfield interviews the Automobile Association of South Africa's Layton Beard.

Dros rape: 'He was sitting near the kid's play area...he had his eye on her'

Dros rape: 'He was sitting near the kid's play area...he had his eye on her'

The man allegedly attacked the six-year-old inside a toilet cubicle at a Dros franchise in Pretoria on Saturday.

New visa rules a relief for our economy and for jobs, says WC MEC

New visa rules a relief for our economy and for jobs, says WC MEC

The Western Cape government and SA Tourism have welcomed the amendments to South Africa's visa regulations.

'She says I'm just waiting for this c**lie to move so I can take the photo'

'She says I'm just waiting for this c**lie to move so I can take the photo'

A caller on the Eusebius McKaiser Show, Zeenat says she was called a derogatory word for Indian on Heritage Day.