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Lower your CGT liability with this easy trick

by , 02 October 2014
When it comes to Capital Gains Tax (CGT) everyone wants to pay less. There are lots of ways you can do this, but sadly few of them are legal.

That doesn't mean you can't lower your CGT liability though. You just need to know the right way to do it.

And today, we have an easy, totally legal trick you can use to reduce your CGT every time you dispose of an asset.

Read on to discover what it is...

 

Use this easy trick to legally reduce your CGT liability 

 
The easiest trick you can use to reduce your CGT liability is to check your tax records.
 
Look for any deductions you claimed on that asset, such as wear and tear or repair costs. Then deduct these amounts from the profit you made when you disposed of the asset. 
 
The reason you can do this, is otherwise it's as if SARS gave you back that money and then took it away again. 
 
This is what you must do to make this handy little trick really work for you.
 
*********** Hot off the press  ************
 
Eight ways to LEGALLY beat the taxman
 
There are a few CGT loopholes that can save you thousands of rands every single year and, in some cases, let you off the CGT hook completely… 
 
 
*************************************
 

Do this to get the most out this CGT reduction trick 

 
To ensure you always know what deduction you claimed on that asset, keep all your records. Document each claim on your tax return so you can see what deductions SARS let you claim.
 
This way you can deduct as much as possible from your profit.
 
Just remember these documents are also important to substantiate the amount of CGT you paid. Without these documents, SARS might think you cheated it out of money you owe it. 
 
If you do this, you can easily reduce your CGT liability the legal way.
 
For more Capital Gains Tax tips and tricks, check out Capital Gains Tax 101: Your ultimate guide to slashing Capital Gains Tax.
 


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