Please assist. I need tax advise.
A plot was bought by 2 friends.
One of the friends have a CC, the CC was contracted by the 2 friends to build a house on the plot. Therefore all the building costs are reflected in the CC.
The plot and house were sold, in their personal capacity. A profit of +- R 200 000 were made.
The 2 friends wants to share the profit. I need tax advise.
I thought of leaving all the profit in the CC. The CC qualifies as a SB, therefore minimal taxation. Declare a dividend of the profit in the entity to the 1 friend that is the member of the CC. This member will then distribute half to the friend (donation tax implication)??
Any other ideas?