QUESTION 2

Jeffrey (married out of community of property) originally purchased his house on 1 June 2009, at a cost of R900 000. There were additional costs at the date of purchase that Jeffrey also incurred: R45 000 in transfer duty and R15 000 in legal fees. Jeffrey incurred various property-related expenses during his period of ownership.

In 2016 he replaced the entire roof with a new set of tiles, at a cost of R40 000. In 2015 he installed a new burglar alarm system at a cost of R11 000. At the time that he acquired the burglar alarm, Jeffrey also subscribed to a private companys security services. The company provided a 24-hour monitoring service of his property. Jeffreys total security subscription fees amounted to R38 000 during his period of ownership.

During 2023 Jeffrey was involved in a dispute with his neighbour regarding an access road between the respective properties. He won the case but his legal fees amounted to R22 000. Throughout the period that he owned the property, Jeffrey ran a part-time consulting business from his home. His consulting office constituted 10% of the propertys floor space. While conducting the business, Jeffrey claimed all associated property-related expenses, for income tax purposes. The property was eventually sold on 1 February 2023, for a gross amount of R3 300 000. Jeffrey engaged the services of an estate agent in order to sell the property. The agents fee amounted to 4% of the gross selling price.

Calculate Jeffreys taxable capital gain/(capital loss) for the 2023 year of assessment