Real Estate Investor Magazine South Africa November 2015 | Page 8

Q&A

ASK THE EXPERTS

Question

Is it an ideal time to invest offshore, or is the current
state of the rand a large detriment against it?

What happens if I dispose of my primary residence
in a joint estate and have a capital gain in excess of
R2-million?

James Bowling

of Monarch&Co answers:

Meyer De Waal

of My Budget Fitness answers:

5

0% of the capital gain that is bigger than R2 million
will be added to your other capital gains for the tax
year and getting tax accordingly.
Note that the apportionment only applies if more than
one natural person holds an interest in the residence. If,
for example, a person holds a 60% interest in his primary
residence, and a company holds the other 40%, then when
the residence is sold, the individual can claim an exclusion
of up to R2 million of the capital gain he makes. If the
company sells its share it cannot get any exclusion because
the R2 million exclusion only applies to natural persons
and special trusts.
On the other hand, if a person holds a 60% interest in
his primary residence, and his father holds the other 40%,
then even though it is not the primary residence of his
father, the person’s exclusion is limited to R900,000 if he
makes a gain on the sale or disposal of the residence. The
apportionment of the exclusion therefore only applies
when more than one natural person or special trust jointly
holds an interest in the residence at the same time.

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015 has been a tough year for South Africans.
Unemployment has soared, electricity outages
have crippled, tourism and mining industries have
suffered and our GDP is expected to reach a dismal 1.3%
for the year.
But above all this, the consistently weakening rand has
lead many South Africans to seek lifestyle and fin