Statement B is true There are potential IHT implications because a sale at an undervalue produces a fall in value of the vendor’s estate which may result in a chargeable transfer. There are CGT implications because the sale by an individual of a...
Secondly, you won’t be expected to pay Capital Gains Tax on personal possessions when receiving items from the recently deceased. If a relative or friend dies and you’re gifted an item, the tax applied will be done so via Inheritance Tax (paid by the deceased’s estate). Thirdly, you...
Capital Gains Tax ("CGT") was introduced with effect from 1 October 2001 by the insertion of section 26A and an Eighth Schedule into the Income Tax Act 58 of 1962, by the Taxation Laws Amendment Act 5 of 2001.Paragraph 40(1) of the Eight Schedule provides that a deceased person must,...
It's generally better to receive real estate as an inheritance rather than as an outright giftbecause of capital gains implications. The deceased probably paid much less for the property than its fair market value in the year of death if they owned the real estate for any length of time. ...
Statement B is true There are potential IHT implications because a sale at an undervalue produces a fall in value of the vendor’s estate which may result in a chargeable transfer. There are CGT implications because the sale by an individual ...