amount of tax to pay for selling a commercial property

[john12]

hi good day

i would just like to know which taxes i would be paying and the amount... if a commercial property is to be sold for 2.5 million and that property is sold including the company(cc) of which the price of the company is included in the 2.5 million......

can the company just be transferred to the buyer or must a price for the company be allocated as well?

which taxes would i the seller pay and what amount?
also would it be in my best interest to sell the company to the buyer and why?


thank you very much for any answers

[CLIVE-TRIANGLE]

If you sell the cc, there are some taxes:

The first is STT (securities transfer tax) which is 0.25% of the proceeds, say R2.5m. The liability for this tax rests on the cc, therefore the new owners. R6250.00

The second is capital gains tax for which you are liable. Assuming a members contribution of R100, your capital gain is (R2.5m - R100) X whatever your marginal rate is.

The third, is your loan account, assuming this is transferred to the new owners as well. The cost is whatever the balance is and I assume the proceed is nil. This will be offset against the gain in two above.

Your other questions depend somewhat on your personal circumstance, but normally it is tax effective to sell the cc as opposed to selling the property out of the cc, because it avoids transfer duties and transfer costs. There is also no exemption from capital gains tax if sold out of the cc, whereas in your personal capacity there is at the very least a R30k exemption.

[john12]

thank you very much ....