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David said: 18 July 2025 at 14:54 How is the capital gain on the sale of a primary residence split between owners? Where do I specify there are two owners? Your system does not allow me to enter the ownership percentages, how do I inform SARS that my wife and I each own 50% of the property? This query relates to question 17814 "Did you own the asset jointly? This means you owned it together with someone else." in the Capital Gains/Losses section. |
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TaxTim Alicia said: 20 July 2025 at 15:29 You need to answer Yes to the question which asks if you own the property jointly. You then indicate your 50% ownership when asked for the percentage you own. You must enter the full proceeds and base cost and SARS should halve the amounts on your assessment and apply half of the primary residence exclusion (i.e. 50% of R2m) to your tax return. The other owner should declare the sale in the same way. As the primary residence is held jointly it will be considered to be held in equal shares (i.e. 50% each). Please check your assessment from SARS when it is sent to ensure you are taxed on half of the gain and R1m primary resident exclusion is allocated to you. When you review your tax return, you might see a higher estimate as unfortunately our refund estimator does not adjust for the joint ownership or partnership calculation. SARS should show this correctly on your assessment. Please see our blog on why Why Refund Estimation May Differ From Your Ita34 . |
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