Question about Trusts

[Johnaman]

I have two residential properties in a Trust. What taxes will I have to pay percentage-wise if I sell one (or both) properties?

Thank you.
Johnaman

 

[Grubscrew]

Capitals gains tax is high on trusts basically 45% on capital gain less any exclusions.

Here is a nice breakdown how to calculate. But the best is to speak to your accountant.

How much tax will be payable on the sale of a house held in trust?

Capital gains tax was introduced in SA with effect from October 1 2001 and the gain or loss attributable for the period only needs to be considered on or after that date

www.businesslive.co.za

 

[Speedster]

I have two residential properties in a Trust. What taxes will I have to pay percentage-wise if I sell one (or both) properties?

Thank you.
Johnaman

Capital gains tax for trusts is at 36% (80% inclusion rate and 45% tax). Depending on the trust deed you could have the option of paying the profit out to the beneficiaries and then they'd be taxed at their much lower personal rate (40% inclusion at their marginal rate).

Edit: this is assuming you're selling at a profit. There is no general tax just for selling, only your capital gain is taxed.

Edit 2: forgot to mention the first R40 000 capital gain is tax free for individuals

 

[Johnaman]

Thanks for the tips/advice - appreciated.
J