100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
LML4804 Assignment 3 Semester 2 2024 - DUE 25 September 2024 R51,98
Add to cart

Exam (elaborations)

LML4804 Assignment 3 Semester 2 2024 - DUE 25 September 2024

 22 views  0 purchase

LML4804 Assignment 3 (COMPLETE QUESTIONS & ANSWERS) Semester 2 2024 (803378) - DUE 25 September 2024 ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)........... QUESTION 1 (CAPITAL GAINS TAX) Ms. Kru,...

[Show more]

Preview 2 out of 14  pages

  • September 10, 2024
  • 14
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:
All documents for this subject (16)
avatar-seller
LIBRARYpro
LML4804
ASSIGNMENT 3 SEMESTER 2 2024
UNIQUE NO.803378
DUE DATE: 25 SEPTEMBER 2024

, LML4804

Assignment 3 Semester 2 2024

Unique Number: 803378

Due Date: 25 September 2024

Tax Law

QUESTION 1: Capital Gains Tax Principles

In this scenario, Ms. Kru and her husband, Lolo, have undergone several transactions
which may trigger capital gains tax (CGT). Let's break down the principles of CGT that
apply to these transactions.

1. Primary Residence Exclusion
First, the sale of their home in Blue Halley needs attention. A primary residence is the
home where the couple lives most of the time, so Blue Halley qualifies as their primary
residence. When you sell a primary residence, South African tax law provides some
relief. The first R2 million of any capital gain on the sale of a primary residence is
excluded from capital gains tax. In this case, the home is sold for R2.5 million, but there
are also expenses to take into account.

2. Costs of Improvements and Selling Expenses
You can deduct certain costs from the selling price before calculating the capital gain.
For example:

 The R200,000 paid to REX Real Estate for their services is a deductible
expense.
 The R30,000 spent on the gold-plated taps qualifies as an improvement cost,
meaning it increases the cost base of the house.
 The R10,000 spent fixing the swimming pool is considered maintenance, so it
does not increase the base cost and is not deductible for CGT purposes.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

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 this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller LIBRARYpro. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R51,98. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

50843 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Start selling
R51,98
  • (0)
Add to cart
Added