Page 33 - F6 - Capital Gains Tax - Base Cost

Example – loss-limitation rule 3

Mr X disposes of a pre-valuation date asset after the

valuation date. He determined market value as R150 on

valuation date. The asset was purchased five years prior to

the valuation date and sold five years after the valuation

date. Other relevant information:

Expenditure incurred before valuation date R100

Proceeds on disposal R50

Time apportionment base cost (calculated according to

par 30(1)) R75

Calculate Mr X’s capital gain or loss arising from

the disposal of the asset.