This financial year will be the year in which many property sellers will encounter CGT for the first time. And they should be prepared, according to Johannesburg-based accountant and tax consultant Paul Nelson, who says that with current high property values even a simple mistake in CGT calculations could result in a tax demand for hundreds of thousands of rands.
Among the most common mistakes he predicts will be:
- Failing to claim, or incorrectly applying, the exemption on the first R1-million of capital gain on a primary residence, and
- Failing to include in the return the market valuation supporting the value of the property on 1 October 2001.
Article on Property24