Page 15 - F6 - Capital Gains Tax - Assets & Disposals
P. 15
Solution
Deduct: Section 12C allowance (R500 000 × 20%) (100 000)
Add: S 8(4)(a) recoupment (R650 000 limited to R500 000
Less R300 000 tax value) 200 000
100 000
Net effect of Eighth Schedule on taxable income:
Calculate proceeds (exclude any gross income amounts)
Selling price 650 000
Less: S 8(4)(a) recoupment (200 000)
450 000
Deduct base cost (exclude any deduction allowed)
Cost price 500 000
Less: Section 12C allowance
(R100 000 (2013) + R100 000 (2014)) (200 000)
300 000
Net capital gain:
Proceeds 450 000
Less: Base cost (300 000)
150 000
Taxable capital gain (@ 66,6%inclusion rate) is included in taxable income 99 900
