February is a good month to save money.
For one, there are fewer days than in a normal month, and thus fewer days in which to spend unnecessarily on things you don’t really need.
It’s also a good month to save money when you consider that the financial year ends on February 28 (Sunday), and the door is still open on claiming all of your tax back for the 2020/2021 tax period.
One of the most effective ways to do this requires you to act now, before that February 28 deadline passes, and centres on Section 12J of the Income Tax Act.
We’ve discussed the basics of Section 12J before, but here’s a little refresher from Flyt Property Investment:
SARS has written Section 12J into the Tax Act, which offers taxpayers a 100% tax deduction in the year of investment if they invest in SMMEs by way of subscription of shares in a Section 12J Venture Capital Company.
Flyt’s Section 12J compliant property developments give investors the full 12J tax deduction, allowing them to put this saving/refund towards their property purchase.
What this means, as a bottom line, is that SARS will effectively fund up to 45% of the purchase price of the property.
At present, Flyt has three developments – Quivertree in Stellenbosch, WINK Foreshore in Foreshore, and Eaton Square in Diep River.
Flyt is already 50% oversubscribed on its Partnership development in the Cape Town CBD – WINK Aparthotels. The new Blended Partnership Fund we gave you the heads up on last week (you’re welcome) has nearly reached its planned R50 million raise, and is well on its way to R100 million – combining units from Eaton Square (Southern Suburbs) and Quivertree (Stellenbosch).
Although the incentive applies to all income tax and capital gains tax, it is THE ONLY WAY to ensure PAYE earners (earning up to R2,5 million a year) can claim all of their taxes back.
For those who don’t have money for the initial investment on hand, there’s also 100% financing available through Flyt.
You may need to be a little financially literate to make sense of this example, but here’s how someone earning R3 million a year can smash a R2,5 million investment and come out on top:
Essentially, a R125 000 deposit will get you R1,075 million back in tax. You then commit R875 000 of that to the fund, and keep the remaining R140 000 after loan fees.
Don’t have the deposit? Not a problem – Flyt can also provide that, so that excuse is out of the window.
You can see how the same numbers work on a R1,5 million investment here, and a R1 million investment here.
Alternatively, to best understand how you can maximise your tax refund in the 2020/2021 year, fill in your details here and an expert from Flyt will be in touch to run you through the process step by step.
It’s far, far easier than reading numbers from a spreadsheet with your cellphone calculator out, cursing the fact that you didn’t pay attention in maths class.
[imagesource:catholictv/x] The Vatican has unveiled a new anime-inspired mascot for chi...
[imagesurce: Quincy Jones / Facebook] Quincy Jones, the musical giant who did it all as a...
[imge:showmax] The new Showmax Original movie The Fix that began streaming yesterday ha...
[imagesource:springboks/facebook] The Springboks touched down in Edinburgh on Sunday af...
[imagesource:freepik] After seeing several overseas organisations like Women Who Hike, ...