When you sell your house you are to pay capital gains tax. Is it possible to deduct the interest paid on the bond, the bond costs etc from the profit made between what you bought the house for and is selling it for?
You can only deduct the interest if its a 2nd or 3rd property and you rent it out , levies rates water & lights are also deductable as long as its over R4000 a month and maintenance costs. The 1st R16 000 of the interest is also not claimable. You basically have to run your properties at a loss to keep our friend at SARS happy even though he gives us nothing in return besides a ball ache.
Assuming that you don't carry a business from your priv residence all running cost (interest, w&l, maintenance) are regarded as personeal expenses and will not be allowed as capital accruals = trying to increase the cost of acquisition or improvements. However, should you improve on the private dwelling (add a pool, enlarge) you should keep proof of those expenses as this will help to increase the base cost (purchase price and transfer fees) from where the (capital) gain is deemed to be calculated. The first R1,5 million gain is not taxable.