Tax returns on deceased estates | Fin24
 
  • Eskom capacity

    Eskom faces structural problems - its ability to supply power is at its lowest in years.

  • Gordhan's testimony

    Here are six quotes that summed up the hottest moments at the inquiry.

  • Labour trends

    Here's where you're most likely to find a job.

Loading...

Tax returns on deceased estates

Sep 03 2013 11:34
Fin24
A Fin24 user wants to know how to handle a tax return relating to a deceased estate. She writes:

I have received IT3(b) forms from banks for the entire tax year and not only up until the date of death.

Do I declare the entire amount of interest on the deceased estate's tax return? I feel that it would confuse the South African Revenue Service (Sars) if I do not.

Yolandie Veldsman, an attorney specialising in deceased estates, responds:

The estate is only liable for the payment of income tax till date of death, if registered.

This means that you will need to request the bank to provide you with a certificate confirming interest till date of death and not the full year of assessment.

The amount till date of death will then be declared in the outstanding return for the deceased.

You will also see that the taxman only requests the tax returns outstanding till the date of death.

The responsibility for income tax on interest that accumulates after date of death is lying with the heirs.

You can only be responsible for income tax once you receive the benefit of the income.

The heir will only declare income in the year that he or she receives that income.

This means that the interest will form part of the inheritance and will be declared in the return for the heir in the tax year when he or she receives it.

- Fin24

Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.

Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

tax  |  money  |  money clinic
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Comments have been closed for this article.
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Was Momentum fair when rejecting R2.4m insurance claim?

Previous results · Suggest a vote

Loading...