Any tax specialists here? I want to get some clarity on the implications of tax on rental property income. I know that you can declare all expenses including finance charges against your rental income which depending on how much it is you may end up paying R0.00. If have a bond on a rental property and I take money from equity on my primary residence and pay off the rental property bond what are the tax implications? This may sound stupid from a tax perspective but the reason why I would do this is because interest rates are higher on the investment property bond compared to the primary residence. The money used to pay off the investment property bond is technically a loan from my primary residence. How do I reconcile this to the taxman so that rental is not seen as a profit but as income that pays the loan I made against the primary residence?
