I have purchased a plot in 2015 and built a house. Are there any amounts in the purchase procedure and the building process that are tax deductible and are bad debts incurred during building deductible
Is this the house for you personally or for a business?
Curioussays: 31 May 2016 at 16:02
My private residence
TaxTimsays: 1 June 2016 at 9:48
No, there are no tax deductions when building your primary residence- this is a capital cost. When you one day sell the house, the cost of the plot plus building costs will be the base cost to be used in the calculation of capital gains tax - CGT (however there is a R2m primary residence exclusion so you only pay CGT if the profit is greater than R2m).
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