Is shared rental taxable?
Important:
This answer is based on tax law year ending 28 February 2017.
Answer:
You mention that both (your uncle and your mom) ‘pay towards the household which is transferred into my bank account’. We accept that you are not appointed as a curator bonis, but that some other person is the curator. It probably will have no impact on the guidance that follows if the amounts were paid by the curator or the individuals concerned.
We agree with your view, this can’t be ‘rental’ as there is no indication that it is a “regular payment to a landlord for the use of property or land” or a “sum paid for the hire of equipment” (ordinary meaning of the word). From the information provided you appear to receive the amounts as an agent and in order to spend on the items listed in your request. It therefore is not ‘income’ (or gross income for that matter) in the normal sense of the word. If the amount included compensation for the services rendered by you, it would be gross income – paragraph (c) of the definition.
At best, you can declare the amounts on the return of income as amounts not considered taxable. The reason would then be that it is not gross income.
Just a comment about the qualifying medical expenses. SARS may dispute the fact that it was ‘paid’ by the individual concerned (your mother). This is where the curator issue may be relevant, but in essence we submit that you will be able to prove that it was paid by her. You paid it on her behalf from money received from her.