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Tomtomtom
Expert Member
- Joined
- May 6, 2010
- Messages
- 1,490
Just wondering if the capital gains tax system means it can make sense to sell assets each year only to buy them again immediately (up to a certain value, and ignoring transaction fees).
It seems to me there could be a double win doing this:
1. Take advantage of the R40k annual CGT exclusion that is otherwise "lost".
2. Reset the base cost of the asset, minimizing future CGT exposure.
Does this make sense? And if so, why would the tax system be designed to promote sub-optimal behaviour?
It seems to me there could be a double win doing this:
1. Take advantage of the R40k annual CGT exclusion that is otherwise "lost".
2. Reset the base cost of the asset, minimizing future CGT exposure.
Does this make sense? And if so, why would the tax system be designed to promote sub-optimal behaviour?
