Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


We want to sell our property in our CC? What are the tax implications?



MJK says:
26 June 2015 at 15:53

Our CC has a property under its name which we currently reviewing a OTP for it. The CC has been dormant for the pass 10 or so years. What will be the tax implication on this Disposal And how can it be worked out?

TaxTim TaxTim says:
28 June 2015 at 12:36

Is someone trying to buy the company or the property from the company?

MJK says:
28 June 2015 at 12:39

They want to purchase the property which is on the CC Name?

TaxTim TaxTim says:
28 June 2015 at 12:45

When was the property purchased? If after 1 October 2001 then this cost plus any improvements will be the base cost which is deducted from the proceeds received and 2/3rds of that gain is included in the company's taxable income which is then taxed at 28%.

MJK says:
28 June 2015 at 13:05

The property was purchased in 1991. The CC has been dormant for the past 10 years since my dad past on.. My mum & siblings were made members of the CC after my Dads Demise There has been no revenue at all and according to SARS the tax number has been deregistered. So What will be the tax implications or how do we go about with sale? Your insight to this would be beneficial to us. Thanks

TaxTim TaxTim says:
28 June 2015 at 15:39

The tax implications will be as above, however you would need to work out the value of the property for the base cost and you can make use of our Capital Gains Tax Calculator to work that out. Once you have worked out the gain then 2/3rds are included in the company income tax which you would then need to submit a return to SARS for and pay tax on 28% of that included gain.

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




Submit your tax return right here!
Get started

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Answer simple questions about your incomes and expenses. TaxTim does the rest. Just click click, submit.

Make tax easy

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.