At C2M Chartered Accountants, we know property investment can be complex, especially when it comes to taxes. Our experts, Elzaan Schoeman and Carla Botha, recently discussed key property tax insights with TVC Wealth & Health Managers.
Key Takeaways:
- Transfer Duty: Payable on property purchases, exempt for properties ≤ R1.1M. Calculated on a sliding scale for higher values.
- VAT: 15% on purchases from VAT-registered sellers (e.g., developers). Applies to commercial rentals; no Transfer Duty if VAT applies.
- Capital Gains Tax (CGT): Taxed on profit from property sales. Individuals: 40% inclusion rate; companies/trusts: 80%. Primary residence exclusion: R2M.
- Rental Income: Declare all income to SARS. Deduct expenses like bond interest, rates, levies, and maintenance. Keep records for SARS compliance.
- Ownership Structures: Personal, joint, company, or trust ownership affects tax outcomes. Consult professionals for the best fit.
- Foreign Investors: Subject to same taxes, plus CGT withholding on sales and SARB exchange control approval.
Watch the full discussion here:
https://youtu.be/d-Bpw6YJPw4?si=zW_G3VzAC3FnGUM7
For tailored advice on optimising your property investments, contact C2M today.
Sincerely,
The C2M Team
