How is profit on sale of private vehicles taxed?

Snide says:
16 July 2015 at 14:45

I bought a used bakkie from a friend at his book value and sold it soon after at a good profit. Will it be taxed under capital gain?

This entry was posted in Tax Q&A and tagged , , . Bookmark the permalink.

TaxTim TaxTim says:
16 July 2015 at 19:35

Do you usually buy and sell cars for profit?

Snide says:
17 July 2015 at 11:20

Hi, I have bought and sold three in the last ten years, but it is not something I do every day. I usually buy from friends or family when I see a bargain.

TaxTim TaxTim says:
17 July 2015 at 14:16

Then you don't really need to declare it as cars are not considered a capital gain if you are not doing this as a business.

Snide says:
22 July 2015 at 14:38

Thanks that was very helpful, but I'm still not sure.
If it is accepted as capital gain, I have no problem, but if SARS regard it as taxable profit, I will have a problem.

TaxTim TaxTim says:
22 July 2015 at 17:42

Selling your own car is not considered a capital as it is a personal asset. Three cars in ten years is not considered a revenue generating scheme either.

Submit your tax return right here!

TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories

Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.