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

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
[LISTEN] UCT student makes custom garments for disadvantaged matric girls

[LISTEN] UCT student makes custom garments for disadvantaged matric girls

Founder of MINEstitched, Kudzai Zinyengere chats about balancing school & her passion to assist young girls in their MD prep.

Skyscraper isn't an award-winning film, but it’s perfectly watchable says critic

Skyscraper isn't an award-winning film, but it’s perfectly watchable says critic

In the movie review, film critic Gayle Edmunds shares her views of the action-packed movie Skyscraper.

Health guru enlightens listeners with philosophy of mindful & conscious eating

Health guru enlightens listeners with philosophy of mindful & conscious eating

Private Health Chef Storm Rodger shares her conscious eating journey, and chats about being mindful when it comes to food.

The state of mental healthcare for the elderly is a growing concern says Prof

The state of mental healthcare for the elderly is a growing concern says Prof

Member at South African Society of Psychiatrists (SASOP) Professor Felix Potocnik chats about Sub-Saharan Africa as an aging population, and the impact of mental healthcare on the elderly in the future.

[LISTEN] The Book Club movie will have you LOLing says film critic

[LISTEN] The Book Club movie will have you LOLing says film critic

Film critic Gayle Edmunds shares her views of the film ‘Book Club’, and chats about some of her favourite scenes from the movie.

[LISTEN] Need answers for tax season?

[LISTEN] Need answers for tax season?

Director, Cfo And co-founder at TaxTim Marc Sevitz chats about Sars latest Service Charter & who qualifies to file a tax return.

Popular articles
More arrests are imminent in connection with the cash-in-transit heists - Hawks

More arrests are imminent in connection with the cash-in-transit heists - Hawks

Seven suspects were arrested in Limpopo in less than 24 hours after a cash-in-transit vehicle was blown up in the province.

Consumers beware of illegal, deadly weight-loss products

Consumers beware of illegal, deadly weight-loss products

Consumer journalist Wendy Knowler and a medical testing expert put several harmful weight-loss products under the microscope.

Madiba’s private secretary Zelda la Grange opens up about money (hers and his)

Madiba’s private secretary Zelda la Grange opens up about money (hers and his)

Bruce Whitfield interviews La Grange about her and Madiba's attitude to money (hopes and fears, successes and failures, etc.)

Criminals targeting homes with aluminium windows, warns neighborhood watch

Criminals targeting homes with aluminium windows, warns neighborhood watch

The Panorama, Welgelegen and Plattekloof Neighbourhood Watch has identified a new house break-in trend.

‘I started my thriving business with R5000 (and made a profit in the 1st month)’

‘I started my thriving business with R5000 (and made a profit in the 1st month)’

After 3 years there are 3 Nic Harry stores (incl online) that sell 100 000 pairs of socks in over 20 countries around the world.

5 contributing factors to the Western Cape's growing green economy

5 contributing factors to the Western Cape's growing green economy

GreenCape CEO Evan Rice unpacks why our province is seeing a great deal of success with sustainable energy projects.