TaxSavvySA

Father gifting land to son

Father gifting land to me. Is RETT due?

The situation

Gifts to spouses or relatives up to the third degree without financial gain are exempt from RETT.

The law

  • RETT Implementing Regulations, exemptions: Exemptions include inheritance, family gifts without gain, in-kind contributions held 5 years and others

What it means for you

You still declare the transaction and claim the exemption. The guide notes a three-year restriction on re-disposal for gifted property. If you sell within that time, RETT can become due.

What to do

  1. Declare the gift.
  2. Upload proof of relationship.
  3. Keep for three years.

We can do this for youReal Estate Transaction Tax on a property sale: 5 percent RETT, exemptions and first home support: SAR 1,500

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