Property Tips: Capital Gains Tax
During the recent SA property boom, many homeowners were tempted to sell their properties for a profit and move to bigger home. But whatever your reason for selling maybe, you’ll need to consider the costs involved in selling. One of those costs is Capital Gains Tax.
Below we briefly discuss Capital Gains Tax in South Africa:
In South Africa the Capital Gains Tax laws for property basically protects the lower end of the market. In general homeowners who wish to sell their homes are liable to pay taxes on any profits gained from the sale, but it’s not really that simple.
A Property that is excluded from Capital Gains Tax is one that the owner has live in personally and has used as a primary residence. Also the profits gained from the sale of the property must be lower the R1 million.
Although if the property is your primary residence and you gained over R1 million net profit from the sale, I’ll be subject to pay taxes only on the amount over R1 million.
Before you decide to sell you home it best to have its market value assess by a property valuer and then to speak to a tax specialist about any capital gains tax you might be liable to pay.
Visit the SARS online for more information about Capital Gains Tax: click here