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 and Mrs Carr
Tax Return for Mr and Mrs Carr for the year ended 28 February 2022:
Income:
- Salary (Mr Carr): R60,000
- Salary (Mrs Carr): R80,000
- Interest (joint account): R48,600
- Rental income: R52,000
- Dividends: R2,000
- Net income from clothing sales (Mrs Carr): R25,000
Total Income: R267,600
Expenses:
- Expenses relating to the rented property: R13,000
Total Expenses: R13,000
Taxable Income: R254,600
Tax Calculation:
- Tax on R195,850 (R165,600 + R30,250 medical tax credits): R22,464
- Tax on R58,750 (R254,600 - R195,850): R14,131
- Total Tax Payable: R36,595
Please note that this is a basic tax calculation and does not take into account any additional tax deductions or credits that Mr and Mrs Carr may be eligible for. It is advisable to consult with a tax professional for a more accurate tax return.