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Johan says: 27 April 2016 at 13:56 I have sold my primary residence which was bought in 2002 and there will be a profit of more than R2 000 000 subjected to Capital Gains Tax. There were a few small improvements (not maintenance) done over the years which I believe can be included in the base cost for example Paving, Blinds, Towel and curtain rails, cornices and garden landscaping. However, I do not have documentary proof for some of the older improvements anymore. (Improvements still form part of property) My question is how far back can SARS ask for documentary proof for this type of improvements? |
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TaxTim says: 28 April 2016 at 11:14 In your tax return, you will need to declare the cost plus improvements of your house that you have sold. You will need to be able to supply documentary proof of the cost and improvements you declare (i.e. sales agreement, invoices for improvements etc) SARS will request these in the event you are audited which is becoming increasingly common. If you don't have the invoices for some of the improvements, you will need to adjust the cost you declare down unfortunately, and exclude these from the calculation of the gain. Please see our Capital Gains Tax Calculator Please Register for TaxTim and let us assist you to complete and submit your tax return to SARS. |
