Page 21 - Partnerships

PARTNERSHIPS

CGT Example

• A, B and C commence business in partnership.

They each contribute R10 000 cash into the

partnership which is later used to purchase

land at R30 000.

• Five years later the land is worth R90 000 and

partner B decides to leave the partnership.

Partner A pays him R30 000 for his share (1 / 3

× R90 000).

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