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
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
