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.
|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|
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.