Final Quiz

I BUY 1 000 LISTED SHARES FOR R20 EACH. A YEAR LATER I BUY ANOTHER 1000 SHARES FOR R25 EACH. I NOW WANT TO SELL 500 SHARES. WHICH STATEMENT IS MOST CORRECT?

A company sells a property to a third party. The agreement was signed on the 1st of April, conditional on the third party obtaining financing. The financing was received on the 15th of April. The buyer paid the deposit on the 1st of May, with transfer registered on the 6th of June. What is the date of disposal for CGT purposes.

A TAXPAYER BUYS AN ASSET FOR R25000. TO DATE, THEY HAVE SPENT R1500 ON REPAIRS, CLAIMED R15000 IN ALLOWANCES, R2000 IN IMPROVEMENTS AND R8000 IN INTEREST. WHAT IS THE CURRENT BASE COST OF THE ASSET?

An individual has a real passion for antique cars and has built up a sizable collection of cars. She does not trade in them, but has decided to sell a car to make space for a more desirable model that she has managed to acquire. The car she sold has cost her R150 000 in 2004. She has spent a total of R45 000 on improvements. She has received R250 000 as proceeds for the car. What must she disclose in her tax return?

A company sells an asset with a cost of R100 000 for R175 000. Selling costs of R15 000 were incurred relating to commissions and attorneys fees. The company has no other transactions this year. It has an assessed loss of R50 000 and an assessed capital loss brought forward of R20 000. What will be taxable capital gain be for the company?

6. BOND REGISTRATION FEES CAN BE ADDED TO THE BASE COST OF YOUR HOUSE.

7. A NON RESIDENT WHO SELLS THEIR KRUGERRANDS WILL BE SUBJECT TO CGT IN SOUTH AFRICA.

8. RETIREMENT FUND PAYOUTS ARE NOT TAKEN INTO ACCOUNT WHEN DETERMINING AN INDIVIDUAL’S TOTAL CAPITAL GAINS FOR THE YEAR.

9. A COMPANY MUST INCLUDE 80% OF THEIR NET CAPITAL GAINS INTO TAXABLE INCOME

10. TRUSTS ARE TREATED THE SAME AS INDIVIDUALS FOR CGT PURPOSES.