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.
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.
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 88P
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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
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT