Results 1 to 4 of 4

Thread: Gain/Loss on business property, revenue or capital in nature?

  1. #1
    New Member
    Join Date
    Jul 2021
    Location
    Sandton
    Posts
    1
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Gain/Loss on business property, revenue or capital in nature?

    Hi ForumSA

    I have sold a property that was purchased by the company 5 years ago. The property ha only used as office space for the company.
    No residential use
    No rental income

    There is a loss on the sale of the property. Buying and selling property is not primary activity of the business. At purchase, the intended use of the property was office space.
    Will the loss be capital or revenue in nature?

    Any source material would be great

  2. #2
    Gold Member
    Join Date
    Feb 2016
    Location
    Johannesburg
    Posts
    713
    Thanks
    74
    Thanked 199 Times in 178 Posts
    Presumably there were no allowances claimed. Otherwise the proceed would represent a recoupment. If the proceed is less than the total cost charged over the years to SARS, then that shortfall is a capital loss. Capital losses are not offset against normal profit but will stay there just about forever to be offset against a capital gain, which for a small business seldom happens.

  3. #3
    Email problem
    Join Date
    Jun 2021
    Location
    North America/USA
    Posts
    13
    Thanks
    0
    Thanked 0 Times in 0 Posts
    It comes under a capital loss I guess. You have incurred a loss while selling the property and made no revenue while you were holding it. This means, you made no profit on the capital invested on the property.

  4. #4
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Quote Originally Posted by heathermalone View Post
    It comes under a capital loss I guess. You have incurred a loss while selling the property and made no revenue while you were holding it. This means, you made no profit on the capital invested on the property.
    No need to guess with Andromeda around

Similar Threads

  1. ITR14 - Capital gain (section42)
    By sunettesmith79 in forum Tax Forum
    Replies: 0
    Last Post: 15-Feb-17, 11:39 AM
  2. [Question] small Capital Gain loss not allowed?
    By Houses4Rent in forum Tax Forum
    Replies: 2
    Last Post: 18-Jan-15, 12:34 PM
  3. [Question] Capital Gain in Trust
    By Roger15 in forum Tax Forum
    Replies: 1
    Last Post: 20-Sep-13, 12:56 PM
  4. Capital gain on the sale of goodwill
    By duncan drennan in forum Tax Forum
    Replies: 1
    Last Post: 31-Jan-13, 02:32 PM
  5. Capital gain distribution in trust
    By QR Smith in forum Tax Forum
    Replies: 2
    Last Post: 10-Jul-09, 02:27 PM

Tags for this Thread

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •