1. UNISA
2. 2024
3. TAX1501-24-Y
4. Welcome Message
5. Assessment 6
QUIZ
Assessment 6
Nombi Bought a holiday home on 1 September 1974 at a cost of R600 000. In 1992 She made improvements to the property for a value of R450 000. The Time-
apportionment base cost is R2 059 405. The market value was n o t determined on 1 October 2001. During the current year of assessment she sold her property for R4 500
000. YOU ARE REQUIRED to calculate the base cost.
Select one:
a. R600 000
b. R 900 000
• c. R2 059 405
d. R1 050 000
Clear my choice
Denise Alexander is 30 years old. During the current year he earned interest from a South African bank of R7 900 and interest from a foreign bank account of R8 050. YOU
ARE REQUIRED to determine the total amount which will be exempt when determining his taxable income for the current year of assessment.
Select one:
a. R23 800
b. R7 900
c. R8 050
d. R15 950
Clear rny choice
,South African interest paid to South African residents
Interest received by a South African resident is included in gross income.
Section 1 0(1 )(i) of the Income Tax Act provides a n exemption for interest earned from a South African
source by any natural person, per annum, u p to an amount of:
> Person younger than 65 - R23 800
Person 6 5 and older - R34 500
This exemption does not apply to interest received from a tax-free investment.
Dividends
Dividends received from a local South African company are fully exempt.
A foreign dividend is included in a taxpayer's gross income but may qualify for a full or partial exemption
from normal tax under section 10B.
FuU exemption will apply in the following scenarios:
“ Foreign dividend received from a company listed on the JSE Limited (Johannesburg Securities
Exchange)
- Foreign dividends received from a foreign company in which the individual holds at least 10% of total
equity shares and voting rights
Partial exemption
AH foreign dividends that do not qualify for the full exemption as descnbed above will qualify for a partial
exemption. The partial exemption is calculated a s 25/45 of the gross foreign dividend received.
, Denise Alexander is 30 years old. During the current year he earned interest from a South African bank of R7 900 and interest from a foreign bank account of R8 050. YOU
ARE REQUIRED to determine the total amount which will be exempt when determining his taxable income for the current year of assessment.
Select one:
a. R23 800
• b. R7 900
c. R8 050
d. R15 950
Clear m y choice
Martha bought a holiday home on 21 March 1993 for R80 0000. During the 2006 year of assessment she made improvements to the property worth R800 000. During
the current year Martha sold the Property for R5 550 555. The Time-apportionment base cost is R1 666 6667. The Market value of the property on 1 October 2001 is R2
400 000. YOU ARE REQUIRED to calculate the capital gain on the property.
Select one:
a. R3 150 555
b. R4 670 555
c. R3 883 888
d. R2 350 555
Clear m y choice
,Personabuse asets
The vast majority of p e r s o n a b u s e assets are excluded from C a p i t a l Gains Tax. I n order to q u a l i f y a s a
personabuse a s s e t , th e a s s e t m u s t be used ' m a i n l y ' for non-trade purposes. T h e w o r d ' m a i n l y ' h as
b e e n h e l d t o m e a n mo re t h a n 50%
Examples of p e r s o n a l - u s e assets are:
Jewellery
Q Q Q Q 0 0 Q D
Artwork
Household furniture
Antiques
P r i v a t e m o t o r v e h i c l e s ( n o t use m a i n l y for b u s i n e s s use}
a m i c r o l r g h t a i r c r a f t o r h a n g g l i d e r with a m a s s of 4 5 O k g o r l e s s
a boat t h a t i s 1 O m e t r e s o r l e s s in l e n g t h
stamp or c o i n c o l l e c t i o n s (but excluding gold or platinum coins whose value is mainly derived
from the metal content)
The following assets used for p u r p o s e s other than the carrying on of a t r a d e w i l l not be classified as
personal-use assets:
An a i r c r a f t with a n em pt y m a s s e x c e e d i n g 450kg.
T h i s would e x c l u d e for e x a m p l e , a h a n g g l i d e r or m i c r o l i g h t a i r c r a f t . It is understood t h a t ai rc raf t
w i t h a n u n l a d e n m a s s i n ex c ess of 4 5 O k g h a v e to be l i c e n s e d a s a i r c r a f t .
o A boat e x c e e d i n g 1O metres in length.
The purpose o f t h e 1 O -metre cut-off i s s i m p l y to e x c l u d e small pleasure craft s u c h a s rowing
boats, ski boats, smalt yachts, rubber dinghies a n d t h e l i k e w h i c h a re u n l i k e l y to y i e l d capital
gains on disposal.
o Fiduciary, usufructuary or similar interests whose value decreases over time.
For example, a husband dies and leaves the bare dominium i n his h o l i d a y h o m e to h i s s o n a n d
t h e r i g h t of u s e to h i s wife f o r t h e rest of her life.
□ A le as e of immovable property.
For example, a holiday home acquired under a 99-year lease.
Time-share and share block interests with a fi xed l if e w h o s e value decreases over time.
Rights or interests in t h e a b o v e a s s e t s
,o A c o i n m a d e m a i n l y from g o l d o r p l a t i n u m of w h i c h t h e m a r k e t v a l u e is m a i n l y a t t r i b u t a b l e to
t h e m a t e r i a l from w h i c h it i s m i n t e d o r cast.
,Lee is 34 years old. During the current year of assessment she emigrated to the United States of America. As a result there was a deemed disposal for income tax
purposes. She owns the following assets:
• Car worth R120 000 (original cost: R220 000)
• Primary residence worth R660 000 (Original cost R400 000)
• Furniture worth R20 000 (original cost: R40 000)
• Clothing worth R5 000 (original cost: R10 000)
You may assume the following:
• These assets are at market value.
• She does not have any assessed capital loss brought forward from the prioryear.
• None of the assets are pre-valuation date assets.
YOU ARE REQUIRED to calculate the taxable capital gain.
Select one:
a. R88 000 taxable capital gain
'• b. R0
c. R130 000 taxable capital gain
d. R220 000 taxable capital gain
Clear my choice
,On 1 February 1999 Benny Jack acquired an asset for R300 000. The market value of the asset on 1 October 2001 was R460 000. Time-apportionment base cost of
the asset is determined to be R350 000. Benny got an offer in South Carolina in the United States of America which required her to relocate urgently. Due to the
urgency, she sold her asset to her friend who could only afford to pay her R320 000 for the asset. The sale was finalized during the current year of assessment and
Benny received her money. The base cost of the asset is:
Select one:
■■ a. R460 000
b. R300 000
c. R350 000
d. R320 000
Clear my choice
What d o e s ' d a t e of p r o m u l g a t i o n ' of an amendment Act m e a n w h e n r e f e r r i n g to t h e I n c o m e Tax Act?
Select one:
a . T h e d a t e t h e Tax A d m i n i s t r a t i o n Laws Amendment Bill are published for public comment.
b . T h e d a t e t h e f i n a l Bill is p u b l i s h e d .
c. T h e d a t e o f t h e A c t ' s p u b l i c a t i o n in the Government Gazette.
d. The date the Draft Taxation Laws Amendment Bill is p u b l i s h e d for public comment.
Clear my choice
,Ayanda Gordians, aged 70 sold her primary residence for R3 500 000 during the current year of assessment. She bought it for R2300 000 in 2008. She incurred
agent's costs of R25 000. She also incurred gardening expenses amounting to R20 000 from the time she bought the property to date. YOU ARE REQUIRED TO
Calculate the taxable capital gain to be included in Ayanda's taxable income because of the sale of the primary residence. You may assume that she did n o t sell any
other capital asset,
Select one:
a. R1 135 000
»■ b, R0
c. R454 000
d. R1 175 000
Which of the following does not constitute a deemed disposal:
Select one:
a. Jones moves from South Africa to the United States of America permanently
1
b. Jones1' Death
c. Reduction of John's debt
d. Jones buying a new Audi A.4 motor vehicle on his birthday
Clear my choice
,Colin is 65 years old. He is married to Rebecca. Rebecca is 55 years old. During the current year of assessment Colin earned the following income:
• Salary from employer of R835 000
• Interest on savings account with local bank of R80 000
• Interest on a tax-free investment account with a South African bank of R3 000
• Dividends from a South African company of R12 000
During the current year of assessment Rebecca earned the following income:
• Local dividends of R60 000
• Colin's Employees' tax deducted from his salary is R223 328
• Colin and Rebecca are married in community of property
YOU ARE REQUIRED to calculate the total amount that will be exempti'include taxfree investment in your answer) from Colin's taxable income during the current year
of assessment.
Select one:
a. R49 500
b. R77 500
c. R72 000
d. R95 000
, Which one of the following assets is not a personal-use asset?
Select one:
■ a . An ti q u e s
O b. Personal furniture
c. Personal gold or platinum coins
d. Private art collections
Clear my choice
2. 2024
3. TAX1501-24-Y
4. Welcome Message
5. Assessment 6
QUIZ
Assessment 6
Nombi Bought a holiday home on 1 September 1974 at a cost of R600 000. In 1992 She made improvements to the property for a value of R450 000. The Time-
apportionment base cost is R2 059 405. The market value was n o t determined on 1 October 2001. During the current year of assessment she sold her property for R4 500
000. YOU ARE REQUIRED to calculate the base cost.
Select one:
a. R600 000
b. R 900 000
• c. R2 059 405
d. R1 050 000
Clear my choice
Denise Alexander is 30 years old. During the current year he earned interest from a South African bank of R7 900 and interest from a foreign bank account of R8 050. YOU
ARE REQUIRED to determine the total amount which will be exempt when determining his taxable income for the current year of assessment.
Select one:
a. R23 800
b. R7 900
c. R8 050
d. R15 950
Clear rny choice
,South African interest paid to South African residents
Interest received by a South African resident is included in gross income.
Section 1 0(1 )(i) of the Income Tax Act provides a n exemption for interest earned from a South African
source by any natural person, per annum, u p to an amount of:
> Person younger than 65 - R23 800
Person 6 5 and older - R34 500
This exemption does not apply to interest received from a tax-free investment.
Dividends
Dividends received from a local South African company are fully exempt.
A foreign dividend is included in a taxpayer's gross income but may qualify for a full or partial exemption
from normal tax under section 10B.
FuU exemption will apply in the following scenarios:
“ Foreign dividend received from a company listed on the JSE Limited (Johannesburg Securities
Exchange)
- Foreign dividends received from a foreign company in which the individual holds at least 10% of total
equity shares and voting rights
Partial exemption
AH foreign dividends that do not qualify for the full exemption as descnbed above will qualify for a partial
exemption. The partial exemption is calculated a s 25/45 of the gross foreign dividend received.
, Denise Alexander is 30 years old. During the current year he earned interest from a South African bank of R7 900 and interest from a foreign bank account of R8 050. YOU
ARE REQUIRED to determine the total amount which will be exempt when determining his taxable income for the current year of assessment.
Select one:
a. R23 800
• b. R7 900
c. R8 050
d. R15 950
Clear m y choice
Martha bought a holiday home on 21 March 1993 for R80 0000. During the 2006 year of assessment she made improvements to the property worth R800 000. During
the current year Martha sold the Property for R5 550 555. The Time-apportionment base cost is R1 666 6667. The Market value of the property on 1 October 2001 is R2
400 000. YOU ARE REQUIRED to calculate the capital gain on the property.
Select one:
a. R3 150 555
b. R4 670 555
c. R3 883 888
d. R2 350 555
Clear m y choice
,Personabuse asets
The vast majority of p e r s o n a b u s e assets are excluded from C a p i t a l Gains Tax. I n order to q u a l i f y a s a
personabuse a s s e t , th e a s s e t m u s t be used ' m a i n l y ' for non-trade purposes. T h e w o r d ' m a i n l y ' h as
b e e n h e l d t o m e a n mo re t h a n 50%
Examples of p e r s o n a l - u s e assets are:
Jewellery
Q Q Q Q 0 0 Q D
Artwork
Household furniture
Antiques
P r i v a t e m o t o r v e h i c l e s ( n o t use m a i n l y for b u s i n e s s use}
a m i c r o l r g h t a i r c r a f t o r h a n g g l i d e r with a m a s s of 4 5 O k g o r l e s s
a boat t h a t i s 1 O m e t r e s o r l e s s in l e n g t h
stamp or c o i n c o l l e c t i o n s (but excluding gold or platinum coins whose value is mainly derived
from the metal content)
The following assets used for p u r p o s e s other than the carrying on of a t r a d e w i l l not be classified as
personal-use assets:
An a i r c r a f t with a n em pt y m a s s e x c e e d i n g 450kg.
T h i s would e x c l u d e for e x a m p l e , a h a n g g l i d e r or m i c r o l i g h t a i r c r a f t . It is understood t h a t ai rc raf t
w i t h a n u n l a d e n m a s s i n ex c ess of 4 5 O k g h a v e to be l i c e n s e d a s a i r c r a f t .
o A boat e x c e e d i n g 1O metres in length.
The purpose o f t h e 1 O -metre cut-off i s s i m p l y to e x c l u d e small pleasure craft s u c h a s rowing
boats, ski boats, smalt yachts, rubber dinghies a n d t h e l i k e w h i c h a re u n l i k e l y to y i e l d capital
gains on disposal.
o Fiduciary, usufructuary or similar interests whose value decreases over time.
For example, a husband dies and leaves the bare dominium i n his h o l i d a y h o m e to h i s s o n a n d
t h e r i g h t of u s e to h i s wife f o r t h e rest of her life.
□ A le as e of immovable property.
For example, a holiday home acquired under a 99-year lease.
Time-share and share block interests with a fi xed l if e w h o s e value decreases over time.
Rights or interests in t h e a b o v e a s s e t s
,o A c o i n m a d e m a i n l y from g o l d o r p l a t i n u m of w h i c h t h e m a r k e t v a l u e is m a i n l y a t t r i b u t a b l e to
t h e m a t e r i a l from w h i c h it i s m i n t e d o r cast.
,Lee is 34 years old. During the current year of assessment she emigrated to the United States of America. As a result there was a deemed disposal for income tax
purposes. She owns the following assets:
• Car worth R120 000 (original cost: R220 000)
• Primary residence worth R660 000 (Original cost R400 000)
• Furniture worth R20 000 (original cost: R40 000)
• Clothing worth R5 000 (original cost: R10 000)
You may assume the following:
• These assets are at market value.
• She does not have any assessed capital loss brought forward from the prioryear.
• None of the assets are pre-valuation date assets.
YOU ARE REQUIRED to calculate the taxable capital gain.
Select one:
a. R88 000 taxable capital gain
'• b. R0
c. R130 000 taxable capital gain
d. R220 000 taxable capital gain
Clear my choice
,On 1 February 1999 Benny Jack acquired an asset for R300 000. The market value of the asset on 1 October 2001 was R460 000. Time-apportionment base cost of
the asset is determined to be R350 000. Benny got an offer in South Carolina in the United States of America which required her to relocate urgently. Due to the
urgency, she sold her asset to her friend who could only afford to pay her R320 000 for the asset. The sale was finalized during the current year of assessment and
Benny received her money. The base cost of the asset is:
Select one:
■■ a. R460 000
b. R300 000
c. R350 000
d. R320 000
Clear my choice
What d o e s ' d a t e of p r o m u l g a t i o n ' of an amendment Act m e a n w h e n r e f e r r i n g to t h e I n c o m e Tax Act?
Select one:
a . T h e d a t e t h e Tax A d m i n i s t r a t i o n Laws Amendment Bill are published for public comment.
b . T h e d a t e t h e f i n a l Bill is p u b l i s h e d .
c. T h e d a t e o f t h e A c t ' s p u b l i c a t i o n in the Government Gazette.
d. The date the Draft Taxation Laws Amendment Bill is p u b l i s h e d for public comment.
Clear my choice
,Ayanda Gordians, aged 70 sold her primary residence for R3 500 000 during the current year of assessment. She bought it for R2300 000 in 2008. She incurred
agent's costs of R25 000. She also incurred gardening expenses amounting to R20 000 from the time she bought the property to date. YOU ARE REQUIRED TO
Calculate the taxable capital gain to be included in Ayanda's taxable income because of the sale of the primary residence. You may assume that she did n o t sell any
other capital asset,
Select one:
a. R1 135 000
»■ b, R0
c. R454 000
d. R1 175 000
Which of the following does not constitute a deemed disposal:
Select one:
a. Jones moves from South Africa to the United States of America permanently
1
b. Jones1' Death
c. Reduction of John's debt
d. Jones buying a new Audi A.4 motor vehicle on his birthday
Clear my choice
,Colin is 65 years old. He is married to Rebecca. Rebecca is 55 years old. During the current year of assessment Colin earned the following income:
• Salary from employer of R835 000
• Interest on savings account with local bank of R80 000
• Interest on a tax-free investment account with a South African bank of R3 000
• Dividends from a South African company of R12 000
During the current year of assessment Rebecca earned the following income:
• Local dividends of R60 000
• Colin's Employees' tax deducted from his salary is R223 328
• Colin and Rebecca are married in community of property
YOU ARE REQUIRED to calculate the total amount that will be exempti'include taxfree investment in your answer) from Colin's taxable income during the current year
of assessment.
Select one:
a. R49 500
b. R77 500
c. R72 000
d. R95 000
, Which one of the following assets is not a personal-use asset?
Select one:
■ a . An ti q u e s
O b. Personal furniture
c. Personal gold or platinum coins
d. Private art collections
Clear my choice
