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Chris says: 21 May 2015 at 15:38 When a house is owned jointly by two people and they sell it, how does the $1. 5 million primary residence exclusion work? Say the house is worth R3 million when they bought it and they sell it for R6 million -- then how much capital gains tax will they pay? |
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TaxTim says: 22 May 2015 at 9:53 Each person is entitled to claim the half the exclusion in this case so R1m each as the exclusion is now R2m. Therefore the capital gain will still be R3m - R2m = R1m which is then divided by 2 for each person. Each person then gets an additional annual exclusion amount of R30 000 which means the gain included in their taxable income is R470 000 each. |
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Chris says: 22 May 2015 at 10:18 Thank you! :-) |
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TaxTim says: 22 May 2015 at 10:29 Only a pleasure! |
