Page 13 - Test 1 Slides - 4. Gross Income

GROSS INCOME

Received by

Example 2

• Just Let Us (Pty) Ltd is a letting agency that administrates all matters

relating to the letting of residential units. Just Let Us will source tenants
on behalf of their clients, collect rent and will take a commission for

this.

• Just Let Us has the practice of collecting a month’s rent upfront from the

tenants to serve as a security deposit. On a monthly basis Just Let Us
retains 10% of the rentals received as commission and pays the

remaining 90% across to the owner of the property. In the current tax

year, a deposit of R24 000 is collected and 5 months’ rent of R24 000 a

month is collected. The deposit is placed in a trust account that is
separate from the account that the rentals are put in.

• What are the implications of the above?

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