Nelson Nilam is a 74 year old resident of the Republic who works in the motor industry. He has been married in community of property to Dinky Magubane (aged 60) for 15 years. Nelson has the following income and expenses for the 2022 year of assessment: Income Salary R 25 000 pm Bonus 10% of gross salary Interest local R 80 000 pa Dividends- (listed SA company) R 15 000 Foreign - Dividends (From a listed company) R3 000 pa Foreign- Interest R5 000 Rental Income (derived from garden cottage) R 10 000 pm Expenses Maintenance to rental property R 30 000 pa He belongs to a medical aid fund to which he contributed R3 000 per month to during the year of assessment and he had medical expenses of R23 500, which were not covered by the medical aid fund. His employer also deducts employees' tax of R12 785 and he naid R20 200 provisional tay for the 2022 vear of assessment
Nelson Nilam is a 74 year old resident of the Republic who works in the motor industry. He has been married in community of property to Dinky Magubane (aged 60) for 15 years. Nelson has the following income and expenses for the 2022 year of assessment: Income Salary R 25 000 pm Bonus 10% of gross salary Interest local R 80 000 pa Dividends- (listed SA company) R 15 000 Foreign - Dividends (From a listed company) R3 000 pa Foreign- Interest R5 000 Rental Income (derived from garden cottage) R 10 000 pm Expenses Maintenance to rental property R 30 000 pa He belongs to a medical aid fund to which he contributed R3 000 per month to during the year of assessment and he had medical expenses of R23 500, which were not covered by the medical aid fund. His employer also deducts employees' tax of R12 785 and he naid R20 200 provisional tay for the 2022 vear of assessment
Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 3BCRQ
Related questions
Question
Transcribed Image Text:Nelson Nilam is a 74 year old resident of the Republic who works in the motor industry. He has been married in community
of property to Dinky Magubane (aged 60) for 15 years.
Nelson has the following income and expenses for the 2022 year of assessment:
Income
Salary
R 25 000 pm
Bonus
10% of gross salary
Interest local
R 80 000 pa
Dividends- (listed SA company)
R 15 000
Foreign- Dividends (From a listed company)
R3 000 pa
Foreign- Interest
R5 000
Rental Income (derived from garden cottage)
R 10 000 pm
Expenses
Maintenance to rental property
R 30 000 pa
He belongs to a medical aid fund to which he contributed R3 000 per month to during the year of assessment and he had
medical expenses of R23 500, which were not covered by the medical aid fund. His employer also deducts employees' tax
of R12 785 and he paid R20 200 provisional tax for the 2022 year of assessment.
Dinky Magubane Income and expenses for the 2022 year of assessment:
Salary
R 18 000 pm
Income from Tax Free Investments
R4 600
YOU ARE REQUIRED TO: Calculate the taxable income for:
Nelson Nilam for the year of assessment ending 28 February 2022.
Note: Please ensure that all tables and rebates used to for the calculation are for the 2022 year of assessment.
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 2 steps
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
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT