https://petersurtees.co.za/transfer-duty-habitatio-and-bare-dominium/ Taxation, Estate Planning And Deceased Estates Tue, 21 Sep 2021 11:11:26 +0000 hourly 1 https://wordpress.org/?v=6.8.2 https://petersurtees.co.za/transfer-duty-habitatio-and-bare-dominium/#comment-7 Tue, 21 Sep 2021 11:11:26 +0000 http://petersurtees.co.za/?p=317#comment-7 Hi Richard’ thanks for your enquiry. For transfer duty, and income tax and estate duty purposes, the valuation process is the same: get a valuation from an estate agent whose opinion you respect or a sworn appraiser. You then determine the value of the habitatio by applying to that value the present value factor in terms of the 12% table. If the property could not reasonably generate a 12% return (what it could generate, not what it is generating now if it’s standing idle to being let at a peppercorn rental), you can use a realistic rate. Next, you determine the life expectancy of the older of the two spouses and apply the life expectancy factor for a person of that age and gender. This will be the value of the habitatio for fiscal purposes.
I hope this explanation is OK for your needs. Kind regards
Peter

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