October 2012: Act Now Or Forever Lose Thy Property Tax Break
Your home, and the tax break
If you hold a residential property in the name of a company, CC or trust read on. You have a golden opportunity to save a huge amount of tax – provided you act now.
The background is that SARS wants to lower its administration workload by reducing the number of corporate entities and trusts so it can focus more on taxpayer compliance. As a result, SARS is incentivising you to transfer your residence to a (qualifying) individual now, by allowing you to do so free of transfer duty and dividends tax, and with the Capital Gains Tax (CGT) “rolled over” i.e. not payable until the new individual owner eventually sells the house down the line.
If you hold a residential property in the name of a company, CC or trust read on. You have a golden opportunity to save a huge amount of tax – provided you act now.
The background is that SARS wants to lower its administration workload by reducing the number of corporate entities and trusts so it can focus more on taxpayer compliance. As a result, SARS is incentivising you to transfer your residence to a (qualifying) individual now, by allowing you to do so free of transfer duty and dividends tax, and with the Capital Gains Tax (CGT) “rolled over” i.e. not payable until the new individual owner eventually sells the house down the line.