I have just found a flat that I would like to buy (I already own one flat).
I was wondering how SARS determines what your primary residence is if you have two properties? Apparently if you sell your primary residence, you have a capital gains break of R1mil, but what's to stop you moving into your second property just before selling and claiming that it is your primary residence?
I have learned that I need to take tax into account with every decision!
If you decide to leave your primary residence, but before you leave you put it up for sale and then move into a new home. SARS will allow you the primary residence exclusion of R2m off the gain of the former house provided that less than 2 years has gone by since moving.
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