What are the capital gains tax (CGT) implications of selling an investment property in SA?
Correct Answer
C) The gain is included in assessable income; a 50% discount may apply after 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.
Why This Is the Correct Answer
Capital gains tax is federal. The net capital gain is included in assessable income, and individuals and trusts that held the asset for at least 12 months can usually apply the 50% CGT discount.
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