Exam (elaborations)
LML4804 Assignment 4 Semester 2 2024 - DUE 30 September 2024
- Course
- LML4804 (LML4804)
- Institution
- University Of South Africa
LML4804 Assignment 4 Semester 2 2024 QUESTIONS WITH ANSWERS
[Show more]
Content preview
[Date]LML4804 Assignment
4 Semester 2 2024 -
DUE 30 September
2024
QUESTIONS AND ANSWERS
, LML4804 Assignment 4 Semester 2 2024 - DUE 30 September 2024
QUESTION 1
(CAPITAL GAINS TAX) Ms. Kru, a South African resident worked for O Insure
(Pty) Ltd (“O Insure”) as a specialist for 15 years. As a result of the Covid-19
pandemic that hit the world, O Insure decided to retrench her team including Ms.
Kru. She was given a severance package of R5 million. Ms. Kru is married in
community of property to Lolo and they stay in Blue Halley, Pretoria They bought
the house in 2011 for R900 000. They also own a holiday house in Hermies,
Western Cape which they bought in 2012 for R800 000. The couple also own a
BVM X and a Range Sports Car that Ms. Kru bought for Lolo as a graduation
present. As a result of the retrenchment, the couple decided to downsize their
lifestyle. They therefore embarked on the following transactions:
• They appointed REX Real Estate agents at a cost of R200 000 to sell the house in
Blue Halley for R2,5 million; replaced all bathrooms’ taps with gold plated ones at
a cost of R30 000; appointed Fix It (Pty) Ltd (“Fix it”) to fix the leaking swimming
pool at a cost of R10 000;
• They also sold their holiday house in Hermanes for R2 million;
• They sold Range Sports Car for R1 million;
• They sold their Kruger Rands for R500 000 WHAT IS REQUIRED OF YOU:
Without calculating the capital gain of Ms. Kru, discuss the capital gains tax
principles applicable in the scenario. [25 marks]
1. General Principles of CGT:
Capital gains tax is a tax on the profit realized from the sale or disposal of a
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 smillanih. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R46,49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
66579 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now