Page 42 - SAICA Tax Day 2 Slides

GROSS INCOMEOSS INCOME
GR

Excluding receipts of a capital nature

Solution:

1. Revenue. Henry’s livelihood is history and as such will be revenue in nature.

2. Revenue. Interest is revenue in nature

3. Revenue. Owner involved in a scheme of profit making

4. For such sales, SARS will indicate how the purchase price is to be apportioned.
The amount relating to trading stock will be revenue. The amount allocated to

goodwill will be capital and the amount allocated to the office building will be part
revenue (R100 000) and part capital (R1,900 000)

5. Capital. Kruger rands are capital in nature when bought as a hedge against
inflation.

6. Revenue. Kruger rands only realize their value through resale. Intention was a
scheme of profit making.

7. Revenue. Payment linked to profits

8. Capital. Fortuitous gains are capital

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