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QUESTION TWO [ 3 0 ] Sandy Silver is a resident of the republic. She both invests and deals in shares. During the 2 0
QUESTION TWO
Sandy Silver is a resident of the republic. She both invests and deals in shares.
During the year of assessment, from the shares she held as investments, she
earned local dividends of RShe sold shares in Blue Limited held as an
investment at a profit of R She suffered a loss of R on the sale of
shares in Red Limited held as an investment The value of her share portfolio held
as an investment decreased in value by R during year of assessment.
From the shares held as trading stock she earned local dividends of R She
sold shares in Rye Limited at a profit of R while she suffered a loss of
R on the sale of shares in Tennessee Limited held as trading stock The
opening stock value of the shares that she deals with was R These opening
and closing stock values are at the lower of their cost or market value.
In addition to the gains enjoyed and losses suffered on her two categories of shares, Sandy
Silver enjoyed the following gains and suffered losses on the disposal on some of her assets
during the year of assessment:
Gains
A gain of R on the disposal of a rentproducing property that she held as an
investment.
A gain of R on the disposal of a metre yacht that she inherited in July
She immediately disposed of this inherited yacht. She never used it Its market
value was R on the day that she inherited it She sold it for R The
gain was R because it had not cost her anything.
A gain of R on the disposal of a coin. Sandy Silver is a numismatist a collector of
coins She does not deal in coins. She disposed of this particular coin because she
had recently purchased a duplicate of it and the duplicate was in a better condition.
A gain of R on the disposal of a Krugerrand. She had originally purchased this
Krugerrand to be given to a niece as a birthday present. After her niece had
disappointed her, she changed her mind about it being an appropriate birthday
present.
A gain of R on the disposal of her primary residence. It had been
purchased by her for R She sold it for R
A gain of R on the disposal of a diamond ring. Sandy Silver and her husband
had separated and then they were divorced. Not wanting to keep the engagement
ring that he had given her, she disposed of it for R
Losses
A loss of R on the disposal of her cell phone. Sandy Silver had used this cell
phone for both business purposes to the extent of and private purposes to the
extent of Her employer granted her an allowance to cover the cost of the
business use of her cell phone.
A loss of R on the disposal of her share of a beach cottage that she and her
exhusband had jointly owned.
Sandy Silver has an assessed capital loss of R to bring forward from the year of
assessment.
Required:
Calculate the taxable capital gain to be included in her taxable income for the year of
assessment.
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