My wife owned and lived in her flat before our marriage. Since our marriage, my wife moved into my dwelling. We have heard that should she now sell the flat it will be subject to Capital Gains Tax ! We are married out of community of property and excluding the accrual system. My wife current earns R156 000 per annum. Please advise. Best Regards Peter
Yes she will be subject to capital gains tax on the gain between selling price and her cost plus improvements. However she will only be taxed at max 3% or so given her tax bracket on that gain. You can make use of our Capital Gains Tax Calculator to see what the gain is.
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