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Avoiding Capital Gains tax when selling a property in a trust
COERT COETZEE WealthMasters
I
own a property in a living residential trust . My small business is struggling and as a result the income is not enough to sustain it in the short term . I am more than 5 months behind in bond payments and now I am forced to sell my property . The problem is , if I sell my property , which has around R1,5 million equity in it , then I will be forced to pay 40 % capital gains tax because it is in a trust . Is there a way that I can look at selling the property but not be liable for the capital gains tax on the profits ? Your advice on this would be helpful ?
our trust lawyers before you sell the house . Coert Coetzee , Founder of Wealth Masters Club
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Fortunately , you own the property in a living trust . It means that you can apply the conduit principle of SARS to make the tax liability on the capital gain 100 % zero . However , you ’ ll have to make sure that the beneficiary clause of your trust is correctly structured for this purpose . It will be best to consult with one of
10 FEB 2023 SA Real Estate Investor Magazine