Rental Income & Section 20A Ring-Fencing Calculator | Du Preez Tax & Bookkeeping Services

Rental income & expenses

Gross rental income for the year

Deductible expenses

Rates, levies & municipal charges

Bond interest

Insurance

Agent / management fees

Repairs & maintenance

Other allowable expenses

Ring-fencing test (only relevant if this trade is a loss)

Taxable income from all other sources before this rental loss is taken into account

Ring-fencing threshold to test against default is the 2027 top-bracket threshold — see note below

Check this figure before relying on it: National Treasury has proposed lowering this threshold from roughly R1.88 million to R673,000, effective 1 March 2026 — right at the start of the 2027 tax year. Whether this was passed into law for the 2027 year should be confirmed against the final Taxation Laws Amendment Act before filing. Change the figure above if the lower threshold applies to you.

Trade & loss-history tests

At least 80% of the property is let to people who are not relatives, for at least half the tax year If checked, this rental is NOT a listed "suspect trade" under s20A(2)(b) on this ground

This rental has produced an assessed loss in at least 3 of the past 5 tax years An independent trigger for ring-fencing, regardless of the suspect-trade test above

There is a reasonable prospect this rental will produce taxable income within a reasonable period Consider: the ratio of losses to rental income, your level of involvement and expertise, whether it's run on ordinary commercial lines, and your plans to address the losses

This rental has produced a loss in 6 or more of the past 10 tax years The "catch-all" rule — if this applies, the loss is ring-fenced even if the escape clause above would otherwise apply

Net rental result

Result

Gross rental incomeR 0.00

Less: total expensesR 0.00

Net rental profitR 0.00

Ring-fencing verdict

Result

– Step 1 — Is this trade a loss this year?

– Step 2 — Is the income threshold met?

– Step 3 — Suspect trade or 3-of-5-year loss history?

– Step 4 — Escape clause: reasonable prospect of profit?

– Step 5 — Catch-all: loss in 6 of last 10 years?

Please note: section 20A ring-fencing is a detailed, fact-specific test — this tool walks through the main steps in the SARS guide as an indicative check, not a formal determination. The "reasonable prospect" escape clause in particular involves judgement across several factors set out in the Act. A ring-fenced loss can still be carried forward and set off against future income from the same rental activity — it isn't lost, just restricted. Please confirm your position with us before filing.