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Thread: Help me out with this CGT calculation

  1. #1
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    Aug 2014
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    Help me out with this CGT calculation

    Hey guys,

    I am trying to make a decision on whether to sell a property or not and I need to know what all the associated costs will be be. Can a tax savy person on here help me out?

    Here are the details

    - Property purchased in 1995, windeed listed purchase price is R60 000

    - Property was registered in a CC which was recently converted to a PTY with me appointed as sole director. Shares of the property were transfered into our family trust

    - Property was an investment property where we collected rent +_ R9000 a month

    - I intend on selling the property for R1 250 000 and passing through all the proceeds to the trusts benificiaries (my brother and I).

    QUESTION - how much money will be passed into the hands of the trust beneficiaries after all taxes and expense are paid off?

    I have a CGT calculator that CGT is R190 784.99 after all transfer, legal and agent costs are settled. Here is the breadkown:

    Selling Price 1,250,000.00
    Agents Commission 8.0%
    Other Selling Costs 6,500.00
    Total Selling Costs 106,500.00
    Transfer Costs 61,384.00
    Renovation Costs -
    Purchase Price 60,000.00

    Capital Gain 1,022,116.00

    CGT Inclusion Rate 66.7%

    Taxable Capital Gain 681,410.67

    Effective Capital Gains Tax % 18.67%

    Capital Gains Tax (Company) ***190,794.99***

    Therefore net amount will be R 891,321.01

    To pay this money over to the trust a further dividend withholding tax of 15% is levied.

    R 891,321.01 -15% = R757,622.86

    Does this sound right?

  2. Thanks given for this post:

    dellatjie (14-May-15)

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