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Which property is my primary residence in SARS' eyes?

Posted 7 February 2014 under Tax Questions



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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!

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TaxTimTaxTim says:
10 February 2014 at 21:20

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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