Question

Assume the following taxpayer information: The taxpayer is a South African manufacturing company (not a small business corporation as defined) with a 31 March 2024 year of assessment. Time left 0:49:55 Calculate the base cost for purposes of capital gains tax for the office building BELOW. Assume paragraph 26 of the 8th Schedule applies. \begin{tabular}{|l|c|r|} \hline Information pertaining to office building: & & \\ \hline Events & Date & Amount (R) \\ \hline Sold - proceeds & 30 October 2023 & 3000000 \\ \hline Purchased - cost price & 01 June 2001 & 1500000 \\ \hline \begin{tabular}{l} Valuation costs to determine market value as at \\ 1 October 2001 \end{tabular} & 01 March 2002 & \\ \hline Market value & 01 October 2001 & 155000 \\ \hline Time apportionment base cost & 01 October 2001 & 1396998 \\ \hline \( 20 \% \) rule value & 01 October 2001 & 593000 \\ \hline Tax value at date of sale & & 1500000 \\ \hline \end{tabular} a. R1 550000 b. R1 500000 c. R1 535000 d. R1 585000

          Assume the following taxpayer information: The taxpayer is a South African manufacturing company (not a small business corporation as defined) with a 31 March 2024 year of assessment.

Time left 0:49:55
Calculate the base cost for purposes of capital gains tax for the office building BELOW. Assume paragraph 26 of the 8th Schedule applies.
\begin{tabular}{|l|c|r|}
\hline Information pertaining to office building: & & \\
\hline Events & Date & Amount (R) \\
\hline Sold - proceeds & 30 October 2023 & 3000000 \\
\hline Purchased - cost price & 01 June 2001 & 1500000 \\
\hline \begin{tabular}{l} 
Valuation costs to determine market value as at \\
1 October 2001
\end{tabular} & 01 March 2002 & \\
\hline Market value & 01 October 2001 & 155000 \\
\hline Time apportionment base cost & 01 October 2001 & 1396998 \\
\hline \( 20 \% \) rule value & 01 October 2001 & 593000 \\
\hline Tax value at date of sale & & 1500000 \\
\hline
\end{tabular}
a. R1 550000
b. R1 500000
c. R1 535000
d. R1 585000

Assume the following taxpayer information: The taxpayer is a South African manufacturing company (not a small business corporation as defined) with a 31 March 2024 year of assessment.

Time left 0:49:55
Calculate the base cost for purposes of capital gains tax for the office building BELOW. Assume paragraph 26 of the 8th Schedule applies.

Information pertaining to office building:

Events Date Amount (R)

Sold - proceeds 30 October 2023 3000000

Purchased - cost price 01 June 2001 1500000

Valuation costs to determine market value as at

1 October 2001
01 March 2002

Market value 01 October 2001 155000

Time apportionment base cost 01 October 2001 1396998

20 % rule value 01 October 2001 593000

Tax value at date of sale 1500000

a. R1 550000
b. R1 500000
c. R1 535000
d. R1 585000

Added by Douglas H.

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