Exam (elaborations)
LML4804 Assignment 3 (Semester 2) 2024 - Due 25 September 2024
- Course
- LML4804
- Institution
- University Of South Africa (Unisa)
LML4804 Assignment 3 (Semester 2) 2024 - Due 25 September 2024
[Show more]
Content preview
LML4804ASSIGNMENT 3 (SEMESTER 2)
DUE DATE: 25 September 2024
Written Assignment Submission Guidelines:
Please ensure that your assignment is submitted electronically through the myUnisa platform no
later than September 2024. Kindly note that fax or email submissions will not be accepted.
NB: Assignment submitted to the lecturer(s) through email will not be considered.
QUESTION 1
Without calculating the capital gain of Ms. Kru, discuss the capital gains tax principles applicable
in the scenario. [25 marks]
ANSWER:
Capital Gains Tax Principles Applicable in the Scenario
1. Overview of Capital Gains Tax (CGT): Capital Gains Tax is levied on the profit made from
selling assets. This profit, known as the capital gain, is calculated by subtracting the base cost
of the asset from its selling price. The base cost encompasses the original purchase price plus
any enhancements that increase the asset’s value, but does not include regular maintenance
expenses.
2. Determination of Base Cost:
o Primary Residence: For the primary residence, the base cost is calculated as the original
purchase price plus any capital improvements. Capital improvements are defined as
expenditures that significantly enhance the asset's value or extend its useful life.
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 EFT, 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller StudentGyde. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R50,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67096 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now