Hi, How does Capital Gains Tax work? I sold a property and someone said I should indicate that it was my primary residence although I have another property. The one I sold was being rented out. Surely SARS would be able to see that? Thanks
You cannot indicate this as primary residence, that would be lying to SARS. You need to include the proceeds of the sale less any fees for making the sale and then the cost of the property plus any purchase fees and the cost of any improvements to the property.
A third of the gain will be included in your income and you will be taxed on this.