2. How does the seller define the CG (Capital Gain) of
a transaction?
Take the base price of the property, and then
subtract the sale value from that.
What is the base cost?
3. According to Mr Goslett you can define the base
expenses by adding the initial sum the seller paid
for the property, together with all other expenses
that occurred during the purchasing and selling of
the house. Transfer costs, attorney costs, duties
and the commission of the agent together with
other services.
General up keeping and repair costs must be
excluded; restorations however are considered as
improving the property and can therefore be
included.
4. The seller is principally paying tax on the revenue
made when immovable assets are sold.
CGT (Capital Gains Tax) is not applicable on all
property dealings.
Should you consider selling your property it is
relevant that you familiarize yourself with the
effects this can have on the property selling
contract as per the chief executive officer at
RE/MAX South Africa.
5. AS PER Mr Goslett the bulk of these sales dealings
will be excluded from Capital Gains Tax as the
initial two million rand principal gain as well as
losses that may have occurred on the selling of the
property will not be considered for the purposes of
CGT.
Non South African investors are not excused. Every
single SA local tax paying individual, company, cc
and trust falls under the CGT rules.
6. According to the terms Act a possessor or the
partner must stay in the specified property to be
considered as the principal or main home ,it also
need to be used primarily for domestic reasons.
As soon as above is established SARS will be able to
work out the CGT that needs to be paid after the
profit was taken into consideration.
7. According to the terms Act a possessor or the
partner must stay in the specified property to be
considered as the principal or main home ,it also
need to be used primarily for domestic reasons.
As soon as above is established SARS will be able to
work out the CGT that needs to be paid after the
profit was taken into consideration.
8. You are welcome to contact our office at
086 110 6204 or send us a personal email at:
info@gpfmortgage.co.za
