What are the capital gains tax (CGT) implications of selling an investment property in SA?
Correct Answer
C) The capital gain is included in the seller's assessable income for federal tax purposes; a 50% discount may apply if the property was held for more than 12 months
CGT is a federal tax. When an investment property is sold, any capital gain is included in the seller's assessable income. Individual taxpayers who held the property for more than 12 months may be eligible for a 50% CGT discount.
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