On 1 December 2016 Dheshnie 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 2016 until 31 January 2018. On 1 February 2018 she sold her primary residence for R4 000 000. Required Determine the capital gains tax consequences that result from the purchase and sale by Dheshnie Singh of her primary residence.
On 1 December 2016 Dheshnie 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 2016 until 31 January 2018. On 1 February 2018 she sold her primary residence for R4 000 000. Required Determine the capital gains tax consequences that result from the purchase and sale by Dheshnie Singh of her primary residence.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter11: Individuals As Employees And Proprietors
Section: Chapter Questions
Problem 24P
Related questions
Question
On 1 December 2016 Dheshnie 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 2016 until 31 January 2018. On 1 February 2018 she sold her primary residence for R4 000 000.
Required Determine the
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT