Fred Stone is 65 years old and is a sole proprietor owning Landscape Gardening services.
During the current year of assessment he incurred the following expenses:
Interest on loan of R23 000 which was used to buy shares in a South African JSE listed
company and he receive dividends of R2 000 from the shares.
Cellphone cost of R12 000 which he uses for business as well as private calls.
His private calls do not relate to his work. He could establish that 20% of his calls are
private.
He received a traffic fine of R1 000 while travelling for work.
YOU ARE REQUIRED to calculate the amount which will be allowed as a deduction form Fred's
taxable income.
Select one:
0.8*12000
a. R33 600
b. R9 600
c. R2 400
d. Rnil
Clear my choice
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,Gianna is 29 years old. She is employed as a registered nurse at a local hospital. She tutors nursing students and
prepares them for exams. She sells nurse training books and saves the money she makes from the sale of training
books into an investment earning dividend income.
YOU ARE REQUIRED to determine which income structure would not be considered to be trade as defined by the Income
Tax Act?
a. The work as a registered nurse at a local hospital
b. Selling of nurse training books
c. An investment earning dividend income
d. Tutoring nursing students
,Elena is a dentist who runs a practice. During the current year, she purchased a new
appointment book for the year for R2 500. YOU ARE REQUIRED to identify the requirement of
the general deduction formula that is not met?
Select one:
a. The appointment book will not be used in the production of income.
b. All of the requirements of the general deduction formula are met and the R2 500 is
deductible.
c. The cost of the appointment book is capital in nature.
d. The cost of the appointment book was not actually incurred.
Clear my choice
, Annesley is 37 years old. In the current year of assessment she earned interest received from
South African bank of R22 000, interest received from a Tax-free savings account of R11 000
and interest received from a foreign bank account of R33 000. YOU ARE REQUIRED to determine
Annesley’s taxable income for the current year of assessment.
Select one:
a. R31 200
b. R33 000
c. R34 800
d. R66 000
Clear my choice
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