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Thread: Selling a bakkie

  1. #1
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    Selling a bakkie

    So I am thinking of selling my bakkie as I never use it. Will do it privately on gumtree - have bought and sold a fair amount over the years with absolutely no problems. But this is now quite a bit higher value. My question is, how to get the money - around R100K. Obviously cash is not on, so ETF it is. But how long do I wait to make sure the cleared amount is actually cleared? And any cons to look out for?

    When I bought the bakkie I was vat reg and did receive the vat back. That was 4 years ago, no longer vat reg, bakkie is paid of, all claimed as an expense. Was a sole prop.

    If I sold, would the R100K be counted as income?
    Would I owe any vat back.

    Or is is better to wait a certain time and have the bakkie written off to zero in the books?

    I do not need to sell it, so time is not an issue - but would rather have the cash invested.

  2. #2
    Gold Member Mark Atkinson's Avatar
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    I buy and sell a lot of things and typically when you get a notification from YOUR bank that the money is in your account then you're good to go. Just be extremely careful to check that the money wasn't deposited by cheque, in which case you don't let the vehicle out of your sight until the full amount has cleared.

    If you're nervous and willing to take a hit on your profits (up to about R4k) you can get a company like Inside Track to facilitate the deal for you. They have a 100% fraud-free rate. Bear in mind they will make you take the vehicle for both COR and a Bosch 150 point inspection to protect the buyer.

    Onto the tax/accounting: The way I read that is that you've claimed the instalments on the bakkie as expenses? That would be the incorrect way to do it as it's a capital charge, not an expense. You would, however, have been able to claim wear & tear on the vehicle since you bought it. I'm guessing the difference between the instalments and wear and tear over the 4 years is insignificant, so I wouldn't worry too much.

    When you sell, you need to "recoup" and amounts that you've previously claimed on the vehicle, limited to the selling price. So if you have claimed R200k as wear and tear expenses on the vehicle, the full R100k will be recorded in income.

    No capital gains tax implications in this case as far as I can tell.

    I don't think you need to declare the output VAT either as you're no longer registered.
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  3. #3
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    Cheers for that Mark. Sorry, I assumed it would go down as an expense, I am sure the accountant got it right. Could not find Inside Track on the internet - but guess i will just have to stipulate the the keys will only be handed once my bank says the funds has cleared, not before. Cheers, again.

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