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What legal entity?

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jo_soap
Contributor
Hi. I know there are some clever accountants on this forum and was wondering if anybody knows what legal entity is most tax efficient for buying a piece of land, building a house and selling the house once built. I know there are all sorts of things with Income tax, CGT and transfer duties and was wondering what I should investigate: trust, PTY company, CC or sole trader (I am currently busy with the business plan) Any pointers would be much appreciated
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9 REPLIES 9
DEP
Super Contributor
Sole Trader is the cheapest route in terms of transfer duty; CGT and accounting fees... busy buys a few houses on auction.
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jo_soap
Contributor
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jo_soap
Contributor
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DEP
Super Contributor
Jo Soap. Where are you buy? Look at auction houses through sheriff, some good bargains coming on the market. Most of these need a bit of renovation though.
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jo_soap
Contributor
There is a plot in Parkhust we are looking at. Will keep us out of mischief for a few months. The nice thing about a plot is you start with a blank piece of paper and can build exactly what people are looking for in the suburb. In Parkhust that is probably 4 garages and two ensuit bedrooms!
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GarethJ
Regular Contributor
On a piece of sub-divided land the size of a postage stamp...
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Not applicable
If you sell the house for below 1.5 mil, then you are exempted from tax on your profit...but u have to physically stay in the house that you are busy building...
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striker
Super Contributor
If your capital gain (profit) is R1.5m or less,and it's your primary residence, CGT exempt.
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doomsdayza
Super Contributor
... is most tax efficient for buying a piece of land, building a house and selling the house once built.

good luck trying to prove not property speculation on that :)
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