TAX LAW
LML4804
ASSIGNMENT 03
SEMESTER 2
YEAR: 2023
, Questions
1.
1. Capital Gains Tax Principles
2. In the given scenario, Mr. Xaba and his spouse, Marcia, have made several
transactions that may potentially trigger capital gains tax (CGT). Here are the
capital gains tax principles applicable to their situation:
3. Residency: Mr. Xaba is a South African resident, which means he is subject to
South African tax laws, including CGT.
4. Disposal of Assets: The couple has disposed of various assets, including their
primary residence in Waterkloof, the holiday house in Jeffrey's Bay, the Range
Sports Car, and Kruger Rands. CGT may be applicable on the gains made
from the disposal of these assets.
5. Primary Residence Exclusion: The primary residence in Waterkloof may
qualify for the primary residence exclusion. This exclusion allows individuals
to be exempt from CGT on the sale of their primary residence, subject to
certain conditions. The exclusion may apply if the property was used mainly
for domestic purposes and was not used for business or rental income
generation.
LML4804
ASSIGNMENT 03
SEMESTER 2
YEAR: 2023
, Questions
1.
1. Capital Gains Tax Principles
2. In the given scenario, Mr. Xaba and his spouse, Marcia, have made several
transactions that may potentially trigger capital gains tax (CGT). Here are the
capital gains tax principles applicable to their situation:
3. Residency: Mr. Xaba is a South African resident, which means he is subject to
South African tax laws, including CGT.
4. Disposal of Assets: The couple has disposed of various assets, including their
primary residence in Waterkloof, the holiday house in Jeffrey's Bay, the Range
Sports Car, and Kruger Rands. CGT may be applicable on the gains made
from the disposal of these assets.
5. Primary Residence Exclusion: The primary residence in Waterkloof may
qualify for the primary residence exclusion. This exclusion allows individuals
to be exempt from CGT on the sale of their primary residence, subject to
certain conditions. The exclusion may apply if the property was used mainly
for domestic purposes and was not used for business or rental income
generation.
