Question

Part A
John Doe is a resident of the republic. He has an assessed capital loss of R13 000 brought
forward from the 2017 year of assessment. During the 2018 year of assessment he suffered a
capital loss of R45 000 on the sale of his domestic motor car.
He made capital gains on the sale of the following capital assets:
 R80 000 from a rent-producing property;
 R7 000 from dividend yielding shares;
 R5 000 from units in a so-called real estate investment trust; and
 R20 000 from a six-metre yacht (a personal-use asset).
It must be noted that John Doe does not deal in the above assets.
Required
Determine John Doe’s taxable capital gain for the 2018 year of assessment. (15)
Part B
On 1 December 2016 Dheshnie Singh, a resident of the republic, purchased a primary residence
for R2 300 000. She used the granny flat portion of her primary residence as her consulting rooms.
(In other words, she traded from a portion of her primary residence. The granny flat portion of this
primary residence comprises 20% of the total primary residence.
She lived in this primary residence, and practiced from its granny flat, for the 14 month period from
1 December 2016 until 31 January 2018.
On 1 February 2018 she sold her primary residence for R4 000 000.
Required
Determine the capital gains tax consequences that result from the purchase and sale by Dheshnie
Singh of her primary residence.

Answer 1

Answer:

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