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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
Less:
Agents Commission 8.0%
Other Selling Costs 6,500.00
Total Selling Costs 106,500.00
Less:
Transfer Costs 61,384.00
Renovation Costs -
Less:
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?
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
Less:
Agents Commission 8.0%
Other Selling Costs 6,500.00
Total Selling Costs 106,500.00
Less:
Transfer Costs 61,384.00
Renovation Costs -
Less:
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?