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TaxTim says: 3 February 2015 at 7:04 You would apportion the gain between the period you used the residence for your home and the rental period. The 2.5m will be apportioned between 7 and 3 years and the primary exclusion would apply to the R1.75m of the primary residence portion. |
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Chris says: 3 February 2015 at 8:19 Thank you!! So is it just as if I have two flats, one of 70% of the value which is my residence, and the other of 30% of the value which isn't? So is it exactly the same calculation if instead for ten years I use 30% of my floor space for my business? |
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Chris says: 4 February 2015 at 11:33 Yes -- I mean, conceptually is it as if my one flat (value R2.5m) is divided into two separate assets, one of value 70% R2.5m and the other of value 30% R2.5m, and only the first one is my primary residence? And would this also be the case if the flat (value R2.5m) was my primary residence for 10 years but 30% of its floor space was used for my work? |
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TaxTim says: 5 February 2015 at 8:30 It theory yes, you would apply the same logic to the property. You would always pay full CGT on the part of the house not used for primary residence purposes. |
