QUESTION $1$

Martin Hoffman, a resident of the Republic, operates a small business in South Africa making yellowwood

and teak furniture. He also restores antiques.

The following items relate to the $2021$ year of assessment:

During March $2020,$ Martin Hoffman sold furniture that he had manufactured in South Africa to a

furniture dealer in Zimbabwe for a cash price of R $50000.$

During February $2021,$ Martin Hoffman was paid a non$-$refundable deposit of R$20000$ from a

customer for furniture to be delivered to her in Johannesburg during March $2021.$

During June $2020,$ Martin Hoffman travelled to Swaziland and carried out restoration work on

antique furniture belonging to a game farmer. The debt for his work was still outstanding on $28$

February $2021.$ It amounted to R$10000.$

While in Swaziland, Marfin Hoffman gambled at a local casino. His net winnings were R$500000.$

Martin Hoffman invested R$50000$ of his winnings in a six$-$monthly fixed deposit in a financial

institution in Swaziland. Interest for the six months ended $31$ December $2020$ was credited to his

bank account in South Africa. This interest determined at the rate of $5\%$ a year, amounted to

R$1250.$ It is payable six monthly.

Martin Hoffman purchased a cottage $($a small house$)$ in Swaziland for R$450000$ out of the

balance of his winnings. During the $2021$ year of assessment he received rentals for the six$-$

month period up to $31$ January $2021($at R$5000$ a month$)$ amounting to R$30000.$ The R$5000$

rental due to him for February $2021$ was still outstanding on $28$ February $2021.$

Martin Hoffman sold some fumiture that had been in his family for generations. He had been

using it in his home. He sold it for cash. It was sold for R$200000.$

You are required to explain, giving full, but brief reasons, whether the above amounts will be included

in Martin Hoffman's gross income for the $2021$ year of assessment. Ignore capital gains tax.