Page 54 - F6 - Capital Gains Tax - Base Cost

Solution - Depreciable Assets Formulae (Par 30(4))

Firstly, one should determine whether the depreciable

formulae are applicable. Determine whether:

 expenditure was incurred before and after the

valuation date, and

 the asset is a depreciable asset and capital

allowances of R200 were claimed, and

 the proceeds (R700) exceed the expenditure (R300)

– in other words, whether the asset was disposed of

at an overall capital profit.