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Snide says: 6 April 2022 at 14:45 I bought a used bakkie from a friend at his book value and sold it soon after at a good profit. Will it be taxed under capital gain? |
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TaxTim says: 6 April 2022 at 19:35 Do you usually buy and sell cars for profit? |
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Snide says: 7 April 2022 at 11:20 Hi, I have bought and sold three in the last ten years, but it is not something I do every day. I usually buy from friends or family when I see a bargain. |
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TaxTim says: 7 April 2022 at 14:16 Then you don't really need to declare it as cars are not considered a capital gain if you are not doing this as a business. Capital Gains Tax was introduced on 1 October 2001. It forms part of normal income tax and is based on the sliding tax tables for individuals. It comes about most often for taxpayers when their home or investment property is sold for a profit (gain) |
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Snide says: 7 April 2022 at 14:38 Thanks that was very helpful, but I'm still not sure. If it is accepted as capital gain, I have no problem, but if SARS regard it as taxable profit, I will have a problem. |
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TaxTim says: 7 April 2022 at 17:42 If you’re in the business of buying and selling cars, then the profit would be taxed as normal income as this would be a revenue generating activity (i.e business). However, if this was more of a once-off event and not considered your trade, then you would not need to declare it. A car is considered to be a personal asset and therefore would not be subject to capital gains tax on disposal. |
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