10 Assets you don't have to pay Capital Gains Tax on
Every time your business sells, donates or scraps an asset and it makes a profit, SARS takes a big bite out of the proceeds as Capital Gains Tax (CGT).
You can't escape CGT. In fact, if you try, SARS could easily find you guilty of tax evasion and smack you with a 200% penalty!
But the good news is, there are 10 assets you don't have to pay CGT on. Read on to find out what they are so you can take advantage of this relief.
What assets should you exclude from Capital Gains Tax?
**********Recommended for you
You have one Capital Gains Tax lifeline
It'll give you secrets most businesses will never know and help you avoid paying crippling taxes every single year.
Click here to get your lifeline today
The most general exclusions are:
Primary residence: The sale of your home is excluded from CGT, if the capital gain you make is less than R2 million.
Personal-use assets: This is an asset belonging to you in your personal capacity and you don't use it in your business.
Retirement benefits: If you receiving a lump sum benefit from a retirement fund, whether locally or internationally.
Long-term assurance: Don't calculate a capital gain or loss that results from a disposal under a long-term insurance policy.
Compensation for personal injury, illness or defamation: If you're a natural person, disregard a capital gain or loss for a disposal that caused you to receive compensation for personal injury, illness or defamation.
Read on for the other five assets you don't need to declare CGT
**********Have you seen this?**********
139 reasons why SARS doesn't want you to see this...
Five more assets to exclude from CGT
SARS is hungry for money... Your money!
It's teetering on the edge of a R83 billion shortfall... and if it falls in, lights will go off, roads will crumble and water will become undrinkable.
So, SARS' only hope is to go after taxpayers with a vengeance.
But not individual taxpayers.
No. It's set its sights on corporate taxpayers, like you.
And that's why it doesn't want you to see this letter...
Because with it, you'll uncover no less than 139 ways for your business to legally pay less tax
. Click here
Gambling, games and competitions: Disregard a capital gain or loss that relates to any form of gambling, gaming or competition.
Collective investment schemes in securities: A unit trust portfolio must ignore any capital gain or capital loss.
Donations and bequests to public benefit organisations (PBOs) and exempt persons: This is when you donate an asset to:
The government or any provincial administration; and/or
A PBO that's exempt from tax in terms of Section 10 (1) (cN).
Exempt persons: Don't worry about capital gain or loss for the disposal of an asset where any amount of whatever nature would be exempt from tax in terms of Section 10.
Awards in terms of the Restitution of Land Rights Act: Disregard any capital gain or capital loss for a disposal that caused you to receive restitution of a right to land, an award or compensation in terms of the Restitution of Land Rights Act, 1994 (Act No. 22 of 1994).
Well there you have it. Now you know when you can disregard a capital gain or loss for tax
For three methods you can use to calculate and declare 100% correct CGT
, simply follow this link…