Maximise Your Tax Deductions Before February Ends

As we embark on a new year, it's the perfect time to take stock of your financial landscape and set a course for greater tax efficiency. 

Here are some strategic ways to maximise your tax deductions:

1. Boost Your Tax-Efficient Investments:

• Maximise Contributions: Contribute up to 27.5% of your income (capped at R350,000) to retirement funds or make lump-sum contributions to your retirement annuity (RA).

• Utilise Tax-Free Savings Accounts (TFSAs): Invest up to R36,000 annually in a TFSA with a lifetime limit of R500,000. Remember, exceeding the limit leads to a 40% tax penalty.

2. Consider Charitable Donations:

• Claim Tax Deductions: Deduct donations up to R100,000 of your taxable income to approved charities (with proof of donation in the form of an 18A certificate).

3. Optimise Work-Related Travel Expenses:

• Logbook Required: Claim travel expenses by maintaining a logbook with odometer readings until February 28th. (Excludes home-to-work travel).

4. Utilise Your Capital Gains Tax (CGT) Exemption:

Rebalance Portfolio Strategically: Use the R40,000 annual CGT exemption to rebalance your investment portfolio while minimizing future tax implications. Remember, consult your wealth manager if you're unsure about rebalancing your portfolio.

By Taking action now, you can significantly reduce your tax burden and keep more of your hard-earned money

Consulting your wealth manager is crucial for tailoring these strategies to your specific financial situation and maximising your tax benefits.

NB:  If you plan to use these tax concessions, you will need to do so in advance of the end of February deadline to allow time for your instructions and documents to be processed.

The above information is factual and objective and therefore is not advice rendered as determined under the FAIS Act. Please contact your Wealth Manager at PWM Wealth to assist you should you require specific advice.