For your 2026 tax submissions, it is important to remember that successful property investors can maximise their returns through smart tax planning. We will delve into rental property tax deductions to remember and all the paperwork you need to have ready to submit to your accountant in time for tax return season.
We recommend filing your documents regularly rather than waiting until tax filing season, so you can submit the right documents to your tax advisor. This will give your accountant or tax consultant sufficient time to make sure all your documents are in order, and you get the maximum allowable deductions ahead of the Income tax return dates.
| Summary of Crucial 2026 Tax Submission Dates | |||
| Date | Taxpayer Type | Description | Notes |
| 21 Jul 2025 – 19 Jan 2026 | Provisional taxpayers | ITR12 income tax return submission window | Period during which provisional taxpayers must submit their income tax returns |
| 19 Jan 2026 | Trusts & provisional taxpayers | Final trust return & provisional return filing deadline | Last date to file trust returns and provisional tax returns |
| 28 Feb 2026 | Provisional taxpayers | 2nd IRP6 provisional payment due | End of tax year payment |
| 31 Aug 2026 (approx.) | Provisional taxpayers | 1st Provisional tax payment & IRP6 submission | Due six months into the tax year & applies regardless of income source (including property rental income) |
| 30 Sep 2026 | Provisional taxpayers | Optional third (top-up) IRP6 payment | Used to avoid penalties or interest if underpaid |
Cara Prins (Chartered Accountant), Finance Manager at IGrow Accounting & Tax Advisory, walks us through what you need to prepare to be ready for tax season. She has created a handy list (see below) of all the documents you need to keep SARS happy. Her easy-to-navigate checklist will hopefully save you time and help you avoid staying up late during filing season.
“Remember, every rand you can legally claim back is a rand that can work harder in your next property investment. It’s not about finding loopholes. It’s about understanding the rules and playing by them intelligently.” – Jacques Fouché, IGrow Founder & CEO
IGrow Accounting & Tax Advisory are experts on all tax-related questions concerning property investment
Tax season is around the corner, and it’s time to figure out how to minimise your tax burden as a property investor. If you own rental properties, whether as an individual or through a company, SARS allows you to deduct specific expenses directly connected to producing rental income. If you understand what’s deductible, you boost your cash flow and remain compliant. You should consult an accounting firm with investment property expertise when filing your tax return.
Here is a simple breakdown of what you can claim as deductions on taxable income in 2026.
Rental property expenses that are tax-deductible for individual property owners
When you declare rental income on your personal ITR12 return, SARS lets you reduce that income via the following deductibles:
- Rates and taxes (municipal rates, refuse, etc.)
- Bond interest – Please note: this refers to only the interest portion, not the capital repayment
- Levies– if you own sectional title properties in complexes
- Repairs and maintenance – costs to restore the property to its original condition, not home improvements
- Insurance premiums for building and landlord insurance. IGrow Private Wealth handles all our IGrow clients’ long-term insurance and IGrow Wealth Management manage short-term insurance needs. (Check out our blog post concerning your short-term insurance needs, you possibly haven’t thought of). Rental property insurance is tax-deductible, and many people aren’t aware of this.
- Agent commissions or letting fees
- Advertising costs to attract reliable tenants
- Utilities you pay for and do not recover, like water and electricity
- Depreciation (wear and tear) on furniture and appliances
- Security costs, such as alarms or armed response, you pay for at your property/ies (if not included in the levies)
- Accountant’s fees if you consult an accountant regarding your investment property
View our blog post on tax-saving tips, which may come in handy now!
Repair vs. Improvement clarity is essential
SARS allows deductions for expenses that restore or maintain your original asset condition (repairs), but not for those that improve or extend the asset’s life (improvements). Repairs are an immediate deductible, while improvements are added to the asset base and may reduce Capital Gains Tax at a later date should you sell your property. It is very important that you keep your receipts and records of improvements made in case you eventually sell your property.
For example, if a bathroom tap gets broken and you replace it, that is deductible from your income tax. But if you decide to change the bathroom taps to make the property more up to date, this is something you can only claim against capital gains tax when you sell the property.
Handy checklist of documents for SARS (and how to access them if you don’t have them on file)
Prepare these documents prior to filing season. It’s a great idea to save these documents in one “tax” folder throughout the year and to keep a spreadsheet or table with a list linked to all documents, if filed digitally, or just listing the documents, the amounts and where they are filed (if paper). Particularly, as they arrive in your inbox (or in a physical folder or file if you receive physical documents).
The first document on your list is an Income Statement. This contains all income and expense items, with a Rental Summary, Bond Interest Summary, Rates, and Levy reconciliations.
To note: This document might be requested during a SARS audit, so all items should be cross-referenced to supporting documents and payments made (e.g. bank statements and receipts).
You can prepare your Income Statement yourself, or your accountant will do it for you using the documents listed in this table:
| Source | Document | Purpose |
| Bank | Bond statements (interest portion) | To claim bond interest deductions |
| Bank | Bank Statements | To verify all transactions and payments |
| Bond Attorney | Statement of Account | For property purchase/sale records |
| Body Corporate (Managing Agent) | Body corporate levy statements | To claim sectional title levy deductions |
| Broker or Rental Agent | Insurance policy documents & proof of payment | To claim insurance premium deductions |
| Conveyancing Attorney | Final Statement of Account for any properties purchased or sold | For capital gains/losses calculations |
| Contractor or Rental Agent | Invoices for repairs & maintenance | To claim repair and maintenance deductions |
| IGrow Wealth Strategist or relevant Estate Agent | Offer to Purchase for any properties bought or sold | For acquisition cost records |
| Municipality | Municipal rates & taxes bills | To claim rates and taxes deductions |
| Rental Agent | Lease agreements | To verify rental income periods |
| Rental Agent | Letting agent commission statements | To claim agent commission deductions |
| Rental Agent | Advertising receipts | To claim tenant advertising costs |
| Rental Agent | Rental Statements and Invoices | To verify rental income and expenses |
| Supplier | Invoices for assets (Furniture, Fittings, etc.) | For depreciation/wear-and-tear calculations |
Preparation for you or your accountant
It is important to have these documents ready for your Accountant/Tax consultant handling your tax return submission:
- Depreciation schedules or wear-and-tear calculations to claim depreciation deductions on furniture and appliances
“By tracking documents and distinguishing repairs from improvements, you’ll stay on the right side of SARS and maximise your rental investment’s after‑tax return.” – Cara Prins, (Chartered Accountant)/Finance Manager at IGrow Accounting & Tax Advisory
Conclusion
It can be seen that using this list of tax-deductible rental property expenses and the table (above) of the necessary documents to prepare for SARS leaves you well-prepared for tax season.
We have also answered the question: Are municipal rates on rental property tax deductible? As mentioned above under the list of deductible expenses, municipal rates are tax deductible.
Rental property insurance is also tax-deductible, as discussed above. Ensure you go through the list of rental property expenses that are tax deductible, and ensure you filled out the Table listing of documents required by SARS.
Give all these documents to your Accountant/Tax consultant so they can prepare them and submit them on your behalf. IGrow’s Accounting & Tax Advisory has been submitting property-related tax return documents on behalf of our clients for almost two decades.
We’ve got you covered this tax season! We know what SARS’ expectations are and we are ready to help you prepare to submit your Income Tax Returns in 2026!
Contact an IGrow Property investment strategist today, and let’s ensure that your tax is in order before the important submission dates arrive.
