Exam (elaborations)
Mancosa Taxation 2a revision
- Course
- Institution
It tackles the concepts of taxation 2a with exercises with answers to practice on .Its also called taxation for individuals
[Show more]
Seller
Follow
BookSquad
Reviews received
Content preview
QUESTION ONEDenver and Megan Small are South African residents, who are married to each other in community of
property. Denver is 65 years old and Megan is 58 years old. The couple have no dependents and no
disabilities as defined.
Listed below are income and expenditure for Denver and Megan for the 2021 year of assessment.
Notes Denver Megan
(R) (R)
Salary 240 000 pa 420 000 pa
Bonus (Birthday Bonus) non-pensionable 20 000 pa
Local Interest 50 000 pa 20 000 pa
Foreign Interest 10 000 pa 8 000 pa
Rent income 21 600 pa
Uniform allowance 1 10 000pa
Relocation benefits 2 25 000 pa
Scholarship 3 40 000pa
Interest from tax free investment 4 15 000pa
Notes:
1. The uniform allowance that was awarded to Megan was for company uniform that all employees are
required to wear. The uniform is blue and yellow and with 4 purple stars on the sleeves.
2. Megans employer required her to relocate from Durban to JHB, the employer had offered to pay for
her transport costs in order to move all her furniture to her JHB apartment.
,3. Megan registered for a Higher certificate course at MANCOSA in tax administration and she
received a scholarship from her employer for her studies.
4. The total interest that Megan had received from her tax free investment to date amounts to R450
000.
YOU ARE REQUIRED TO:
1.1. Calculate the taxable income for Megan for the year of assessment ending 28 February 2021
,Gross Income 577 300
Salary 420 000
Bonus 20 000
Local interest (50 000 + 20 000) = 70 000/2 35 000
Foreign interest (10 000 + 8 000) =18 000/2 9 000
Rent income (21 600/2) 10 800
Fringe benefits:
Uniform allowance 10 000
Relocation benefit 25 000
Scholarship 40 000
Interest from tax free investment (15 ) 7 500
Less: Exemptions (106 300)
Local interest (L = 23 800) (A = 35 000) A>L=L A<L=A (23 800)
Foreign interest (0)
Uniform allowance (10 000)
Relocation benefits (25 000)
Scholarship (L = 60 000) (A = 40 000) A<L=A (40 000)
Interest from tax free investment (7 500)
Taxable income 471 000
, Marie Licht married Piet Licht in 1997. They are married out of community of property. Marie owns
an apartment which she purchased for R150 000 on 1 October 1970 while she was still a student.
After she and Piet got married, they moved into a new house but she kept the apartment and rented
it out to students. On 1 April 2018 she transferred ownership of the apartment to Piet. The market
value on the date of transfer was R650 000. The apartment was valued at R440 000 on 1 October
2001.
The following improvements were made to the apartment:
• 1 January 1980: Installed a shower at a cost of R10 000.
• 1 June 2008: One of the walls in the kitchen was broken out to create an open-plan kitchen at a
cost of R70 000.
Piet decided to sell the apartment on 1 September 2018. He sold it for R750 000.
Calculate the TAXABLE capital gain or assessed capital loss for both Marie and Piet due to the
transfer and disposal of the apartment.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BookSquad. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.14. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now