Disposals between spouses - South African Revenue Service

A Primary Residence

The disposal of a primary residence that falls within the joint estate of spouses married in community of property is treated as having been made in equal shares by each spouse and the primary residence exclusion will be apportioned between them.

Example:

	Husband	Spouse	Joint
Proceeds	R 2 000 000	R 2 000 000	R 4 000 000
Less base cost	R 500 000	R 500 000	R 500 000
Gain	R 1 500 000	R 1 500 000	R 3 000 000
Less exclusion	R 1 000 000	R 1 000 000	R 2 000 000
Capital gain	R 500 000	R 500 000	R 1 000 000

Investments

A disposal of an asset by a spouse married in community of property is treated as having been made –

in equal shares if the asset forms part of the joint estate; and
solely by the spouse making the disposal if the asset does not form part of the joint estate.

Thus if the capital gain or loss forms part of the joint estate it must be split equally between the spouses. But if it is excluded from the joint estate it must be recognised only by the spouse making the disposal.

A Primary Residence

Investments

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