Do I need an accountant for capital gains?
Mia Phillips
Updated on March 11, 2026
Capital gains tax is a tax levied on the profit you earn when selling an asset that has increased in value. There are some assets which are tax-free which is why it’s essential to consult an accountant or a personal tax accountant so that you aren’t taxed for something that is tax-free.
How can I lower my capital gains tax in South Africa?
You can use several retirement savings vehicles to avoid capital gains and defer capital gains and income taxes. With many of them you can invest using pretax funds. This means that although you’ll eventually be charged some income tax when you finally withdraw them, your funds won’t be subject to capital gains tax.
What is the rate of capital gains tax in South Africa?
Capital Gains Tax (CGT)
| Type | 2022 | 2019 |
|---|---|---|
| Individuals and Special Trusts | 18% | 18% |
| Companies | 22.4% | 22.4% |
| Other Trusts | 36% | 36% |
How much do accountants charge for tax returns?
The average cost of hiring a tax professional ranges from $146 to $457. Purchasing tax accounting software can be a less expensive option; it can be free (for simple returns) and for more complex filing options, it will generally cost less than $130.
What amount is exempt from capital gains tax?
$250,000
You can sell your primary residence and be exempt from capital gains taxes on the first $250,000 if you are single and $500,000 if married filing jointly. This exemption is only allowable once every two years.
Do you have to pay taxes on capital gains?
If you have a big winner, especially with an individual stock or a speculative investment like bitcoin, take your gains and move on. If we become too obsessed with taxes we run the risk of letting our investment returns suffer.
How are capital gains taxed in the lower brackets?
Some taxpayers in the lower brackets actually pay a 0% capital gains rate. If your grown children are no longer dependents, and would qualify, they may be able to receive the shares and sell them tax-free. Just be sure to stay under the $15,000 annual gift tax exclusion per person.
Which is the best way to manage capital gains?
Use your IRA. If you have a well diversified IRA, we can often rebalance in that account and not create a taxable event. While many investors put taxable bonds in IRAs and leave the equities in a taxable account, for taxpayers in a high bracket, you may prefer to buy tax-free municipal bonds in the taxable account and keep equities in the IRA.
How can I avoid paying capital gains on a charity sale?
The charity will get the same amount of money and they will pay no capital gains on the sale. You will still get the same tax deduction (if you exceed the now higher standard deduction) plus you will avoid paying capital gains. Use the cash you were planning to donate to replenish your investment account.
