Bill to Double Capital Gains Tax Exclusion for Home Sellers Gains Ground in US Congress

Ons siening

This is a US legislative development, but South African property professionals and investors with offshore exposure should take note of the underlying principle: when tax policy discourages selling, it suppresses supply and worsens affordability. SA faces a structurally similar dynamic. Local sellers are not subject to a direct capital gains exclusion equivalent, but Capital Gains Tax (CGT) on primary residences does include a R2 million exclusion — a figure that, like the US threshold, has not kept pace with property price inflation in high-demand metros like Cape Town and Sandton. For SA landlords and investors, the US debate reinforces why CGT policy matters to housing supply. If SARS were to revisit the primary residence exclusion — currently unchanged in real terms for years — it could similarly unlock stock in constrained urban markets. For now, SA buyers and sellers should factor CGT carefully into any transaction above the R2 million threshold, particularly in the Western Cape where property values have surged. Speak to a tax practitioner before listing.