Question
Browyn Ray purchased a plot of land three years before valuation date (1 October 2001) for R810 000. She sold the plot of land 19
Browyn Ray purchased a plot of land three years before valuation date (1 October 2001) for R810 000.
She sold the plot of land 19 years after valuation date for R690 000.
The market value of the plot of land was R1 030 000 on 1 October 2001.
No deductions or capital allowances in the determination of Browyn Ray's taxable income were enjoyed by her on the plot of land.
The proceeds of R690 000 were not included in her gross income. You can assume that the time-apportionment base cost of the plot of land was R793 636.
Required
Discuss the capital gain or loss consequences for Browyn Ray that arise from the purchase and sale of the plot of land in terms of paragraph 27 of the Eight Schedule.
Support your answer with references to the Eight Schedule and calculations.
Ignore value-added tax.
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