Page 26 - Test 1 Slides - 4. Gross Income

GROSS INCOME

Excluding receipts of a capital nature

1. Henry Peterson lectures History at Stellenbosch. He participated in a TV quiz
show that deals only in questions that relate to history and he won.

2. Interest of R10 000 was received by Amanda.

3. Adam is a race horse breeder and trainer. He received winnings on a wager
he took with his champion horse competing in the Durban July.

4. A company sold its business for R3 000 000 in a lock stock and barrel sale.
No amounts were included in the sale as regards the amounts paid for each
item. SARS indicated that R600 000 would be allocated to trading stock, R2
000 000 to sale of an office building, and R400 000 to goodwill. R100 000
allowances were claimed on the building in previous and current tax returns.

5. Heimel bought 15 Kruger rands 5 years ago as a hedge against inflation

6. Bellows bought 17 Kruger rands 30 years ago as he thought he would make
a lot of money on them.

7. A company sells his business. The sales agreement notes that there will be
no amount received upon sale for goodwill but that a percentage of future
profits will be paid out in lieu of goodwill upon sale.

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