Kelley was born on 5 October 1984 in Lima. During the current year of assessment, she sold her holiday home for R7 000 000. The selling price includes state agent commission of R700 000 paid to the estate agents. Kelley agreed to repay the purchaser R2 200 000 once the transaction is complete. The transaction was completed before the year of assessment. YOU ARE REQUIRED to determine the proceeds.a.R6 300 000b.R4 800 000c.R2 200 000d.R7 000 000Clear my choice

During the current year of assessment Fallon sold her holiday apartment. She has never used the apartment for personal use. She acquired the apartment for R680 000 in 2010. She replaced the bath and shower taps that were damaged for R4 000. Interest on bond is R100 000. She made improvements on the apartment of R120 000. She sold the apartment for R1 120 000 including estate agent commission of R112 000. Fallon incurred transfer costs of R19 000. YOU ARE REQUIRED to determine the base cost of the apartment.a.R1 012 000b.R1 035 000c.R931 000d.R680 000

Blake is 40 years old. During the current year of assessment, he sold his house for R630 000. included in the selling price is estate agent commission of R29 999 paid to Kukkor real estate, the estate agents who assisted him in selling his house. YOU ARE REQUIRED to determine the proceeds.a.R659 999b.R600 000c.R630 000d.R600 00

During the current year of assessment Fellen sold her primary residence for R7 500 000. It was purchased on 1 June 2006 for R3 780 000. She incurred commission costs on the sale of property of R67 500. YOU ARE REQUIRED to calculate the taxable capital gain to be included in Fellen’s taxable income because of the sale of the primary residence. You may assume that she did not sell any other capital asset.a.R1 652 500b.R1 612 500c.R3 652 500d.R645 000

Ntabeni is 50 years old. During the current year he sold his second home for R8 000 000. He bought this home 5 years ago for R5 000 000. The intention was to develop it to be an investment property, but they ended up using it as a holiday home. The estate agent’s commission on the sale was 5% of the selling price. He also did improvements amounting to R300 000. YOU ARE REQUIRED to determine the base cost of the of the property at the point of sale:a.R5 000 000b.R5 300 000c.R5 700 000d.R2 300 000

Jennings bought an asset before 1 October 2001. During current year of assessment, she sold the asset for R500 000. She did not keep an accurate record of the expenditure or the cost of the asset. The Market Value of the asset on 1 October 2001 was R600 000. YOU ARE REQUIRED to determine the base cost of the asset.a.The base cost is limited to the Proceeds of R500 000 because the Proceeds are less than the Market Value.b.R200 000, the base cost is 20% of the (Proceeds less cost incurred after 1 October 2001) plus expenditure incurred after 1 October 2001. This is also known as an anti-avoidance measure.c.The base cost is R600 000, the Market Value of the asset on 1 October 2001. Jennings can use the Market Value even if it creates a loss.d.The base cost is R100 000 which is the Market Value of the asset on 1 October 2001 less Proceeds of R500 000 as the sale of this asset cannot create a loss.