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Murray says: 2 January 2022 at 17:33 I sold my property, which is my primary residence, for R9 million. The initial purchase price was R7 million and I spent R1 million on improvements - the total base cost was therefore R8 million. If I apply the R2 million exemption, does this put me in a capital loss position? (i.e R9m less R8m less R2m = -R1m) If yes, can I use this capital loss to offset capital gains in the same tax year, or carry it forward to the next tax year? |
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TaxTim says: 3 January 2022 at 11:07 Please refer to our capital gains guide and our capital gains tax calculator . The primary residence exemption is limited to the capital gain you make on the sale of your primary residence. Therefore, if your capital gain on the sale of the property is R1 million, the primary residence exemption is limited to R1 million. Therefore your total capital gains are R0. The primary residence exemption may never create a captal loss. |
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