QUESTION FOUR 4.1. On 1 December 2017 Suvi Singh, a resident of the republic, purchased a primary residence for R2 300 000. She used the granny flat portion of her primary residence as her consulting rooms. (In other words, she traded from a portion of her primary residence.) The granny flat portion of this primary residence comprises 20% of the total primary residence. She lived in this primary residence, and practiced from its granny flat, for the 14 month period from 1 December 2017 until 31 January 2019. On 1 February 2019 she sold her primary residence for R4 000 000. Required: Determine the capital gains tax consequences that result from the purchase and sale by Suvi Singh of her primary residence. 1 4.2 John Doe is a resident of the republic. He has an assessed capital loss of R13 000 brought forward from the 2018 year of assessment. During the 2019 year of assessment he suffered a capital loss of R45 000 on the sale of his domestic motor car. He made capital gains on the sale of the following capital assets: R80 000 from a rent-producing property; R7 000 from dividend yielding shares; R5 000 from units in a so-called real estate investment trust; and R20 000 from a six-metre yacht (a personal use asset). It must be noted that John Doe does not deal in the above assets. Note: All answers must be typed out and all showings must be shown QUESTION FOUR 4.1. On 1 December 2017 Suvi Singh, a resident of the republic, purchased a primary residence for R2 300 000. She used the granny flat portion of her primary residence as her consulting rooms. (In other words, she traded from a portion of her primary residence.) The granny flat portion of this primary residence comprises 20% of the total primary residence. She lived in this primary residence, and practiced from its granny flat, for the 14 month period from 1 December 2017 until 31 January 2019. On 1 February 2019 she sold her primary residence for R4 000 000. Required: Determine the capital gains tax consequences that result from the purchase and sale by Suvi Singh of her primary residence. 1 4.2 John Doe is a resident of the republic. He has an assessed capital loss of R13 000 brought forward from the 2018 year of assessment. During the 2019 year of assessment he suffered a capital loss of R45 000 on the sale of his domestic motor car. He made capital gains on the sale of the following capital assets: R80 000 from a rent-producing property; R7 000 from dividend yielding shares; R5 000 from units in a so-called real estate investment trust; and R20 000 from a six-metre yacht (a personal use asset). It must be noted that John Doe does not deal in the above assets. Note: All answers must be typed out and all showings must be shown