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Wedge says there are two types of residential property ownership: if the owner lives in the property most of the time and does not use too large a section for work purposes, it is classed as his primary residence. On such homes today, the first R2 million of the capital gain is totally tax free in terms of the primary residence exclusion tax claim. This, in effect, means that a high percentage of South African homes are sold without paying Capital Gains Tax because they change hands roughly every eight to ten years and their sales price is often not high enough to make a capital gain of R2 million.
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