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A CC has 2 members, each contribution R 50. The CC owns a residential property - not income earning, the members want to sell the property. They want to know whether they should sell the CC, or just the property out of the CC.
What taxes are payable for each
Thanks
Fiona
If they sell the cc then there is no additional costs. They pay tax on the capital gain, which is dependent on their personal affairs and situation, such as age, other income etc, and is calculated according to certain formula. There is also Securities Transfer Tax which is 0.25% of the sale value.
If the cc sells the property, besides the delay in registration the sale will attract costs and possibly duty and then the cc pays capital gains tax and so on. Then it must declare a dividend to the members which also attracts tax. I am almost sure it is cheaper selling the cc, obviously provided there are no issues with it. It is also quick and easy and I suppose that is why it is owned by a cc.
But somebody must do the numbers for them to get the actual answer.
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