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How is profit on sale of private vehicles taxed?

Posted 22 July 2015 under Tax Questions



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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?

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TaxTimTaxTim 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.


TaxTimTaxTim 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.


TaxTimTaxTim 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.


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