TAX2601 ASSIGNMENT 4
SEMESTER 1 2024
Question 1:
A taxpayer received R800,000 from the sale of an asset. The base cost of the asset was
R300,000. Calculate the capital gain and explain how it will be included in the taxpayer's income
for the year of assessment.
Answer:
The capital gain is calculated as follows:
Capital Gain = Proceeds - Base Cost
Capital Gain = R800,000 - R300,000 = R500,000.
For an individual, 40% of the capital gain is included in taxable income:
Taxable Capital Gain = R500,000 x 40% = R200,000.
The taxable capital gain of R200,000 will be added to the taxpayer's income and taxed
according to their marginal tax rate.
Question 2:
John donates R500,000 to his brother. Calculate the donations tax payable, considering the
current tax rates.
Answer:
Donations tax is levied at 20% on the value of donations exceeding the annual exempt amount
of R100,000.
The taxable portion of the donation is:
R500,000 - R100,000 = R400,000.
The donations tax payable is:
R400,000 x 20% = R80,000.
Question 3:
An employee is provided with the use of a company car by their employer. The determined
SEMESTER 1 2024
Question 1:
A taxpayer received R800,000 from the sale of an asset. The base cost of the asset was
R300,000. Calculate the capital gain and explain how it will be included in the taxpayer's income
for the year of assessment.
Answer:
The capital gain is calculated as follows:
Capital Gain = Proceeds - Base Cost
Capital Gain = R800,000 - R300,000 = R500,000.
For an individual, 40% of the capital gain is included in taxable income:
Taxable Capital Gain = R500,000 x 40% = R200,000.
The taxable capital gain of R200,000 will be added to the taxpayer's income and taxed
according to their marginal tax rate.
Question 2:
John donates R500,000 to his brother. Calculate the donations tax payable, considering the
current tax rates.
Answer:
Donations tax is levied at 20% on the value of donations exceeding the annual exempt amount
of R100,000.
The taxable portion of the donation is:
R500,000 - R100,000 = R400,000.
The donations tax payable is:
R400,000 x 20% = R80,000.
Question 3:
An employee is provided with the use of a company car by their employer. The determined
