What amount do I reflect on the Individual tax return under the Trust Income section? The taxpayer will receive a capital distribution from the trust in respect of the sale of two properties by the trust( one property is a primary residence and the other
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
You must reflect the full amount of the capital gain that was vested, by the trustees, in the beneficiary’s return of income (the ITR12). This amount will agree to the amount declared as such in the ITR12T. This capital gain is then added to the other capital gains, if any, that is declared in a different part of the individual’s return. SARS will on assessment, apply the annual exclusion and the inclusion rate.
The return actually specifically mentions that gross amounts must be captured.