|
Richarf says: 25 February 2016 at 9:19 We just sold a flat that we owned for 10 years. We lived in it for 2 years but we've been letting it for the last 5 years. Do I need to pay CGT of the full 10 years of can I deduct some amount for tee 2 years that we lived in it and it was our primary residence? |
|
TaxTim says: 25 February 2016 at 14:13 Out of the 10 years, you must pro-rata the time used as a primary residence (2/10) versus time used as a rental property (8/10). You would then proportion the Capital Gain accordingly. You would always pay full Capital Gains tax for the portion of the gain relating to rental use (8/10), and then you would apply the primary residence exclusion of R2m to the balance (2/10). Remember though that 1/3 of the Capital Gain is added to your income and taxed at your normal tax rate. Register for TaxTim and let us assist you to complete and submit your tax return to SARS. |
Do Your Tax Return Easily