Page 55 - F6 - Capital Gains Tax - Base Cost
P. 55
Solution - Depreciable assets formulae (par 30(4)) (cont.)
The depreciable proceeds formula should be used to determine the
proceeds that relate to the period before 1 October 2001:
Next, the TAB cost is determined using the depreciable TAB formula:
The total base cost is the TAB cost (R44), plus the expenditure
incurred after valuation date (R200 – 100) = R144.
The capital gain on the disposal using the TAB cost will be R356; ie
((R700 – 200) – R144).
