As a taxpayer, you can utilise certain security expenses that have been incurred in improving your primary residence or investment property to reduce the capital gains tax that you may need to pay when you dispose of the property. When you purchase a property with the intention of keeping it as a long-term asset, you may be subject to capital gains tax when you sell that property. There is currently a R2m capital gains exclusion on the disposal of a primary residence. This means if the capital gain that you have made on your property is less than R2m, you will not pay capital gains tax on the disposal. However, the purchase price and sale price of your primary residence should still be listed on your tax return in the year that you disposed of that property. If your capital gain is more than R2m, you will have to pay capital gains tax on the disposal of your primary residence, and the discussion below may assist you in reducing your capital gains tax in such circumstances. If you ha...
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