A commercial property has been converted to a residential property and has also been registered as a sectional title unit. Would this property qualify for the Section 13sex allowance if it is the first time that a tenant would move into this property?
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
The section 13sex deduction is allowed in respect of any new and unused residential unit (or of any new and unused improvement to a residential unit) owned by the taxpayer if the other requirements are also complied with. One of the requirements of section 13sex, see section 13sex(1), is that the taxpayer owns at least five residential units within the Republic, which are used by the taxpayer for the purposes of a trade carried on by the taxpayer.