TAXATION OF MARRIED PERSONS
Mr and Mrs Carr, who are married in community of property, have the following income
and expenditure for the year ended 28 February 2022:
Salary: Mr Carr (76 years of age)……………………………………………60 000
Mrs Carr (under 65 years of age)…………………………………..………...80 000
Interest (joint account)…………………………………………………………48 600
Rental income (fixed property)……………………………………………......52 000
Expenses relating to the rented property………………………………..…..13 000
Dividends (from South African companies)…………………………………..2 000
In addition, Mrs Carr in her spare time makes and sells clothing. Net income from this
activity amounted to R25 000 for the 2022 year of assessment.
Please complete the tax return for mr Carr
Based on the information provided, the tax return for Mr Carr would be as follows:
INCOME:
- Salary: R60,000
- Interest (50% share): R24,300 (R48,600 / 2)
- Rental income (50% share): R26,000 (R52,000 / 2)
- Dividends: R1,000 (50% share of R2,000)
TOTAL INCOME: R111,300
EXPENSES:
- Expenses relating to the rented property: R6,500 (50% share of R13,000)
- Clothing making and selling expenses (not specified): R12,500 (estimated based on net income of R25,000)
- Other allowable deductions: (not specified)
TOTAL EXPENSES: R19,000
NET TAXABLE INCOME: R92,300
TAX CALCULATION:
- Tax payable on R92,300 (based on SARS tax brackets for individuals under 65 years old): R21,241
Therefore, Mr Carr would need to pay tax of R21,241 for the year ended 28 February 2022.