TAX3703-EXAM-PACK.

TABLE OF CONTENTS MAY/JUNE 2014……………………………………………….3 OC/NOV 2014…………………………………………………….8 MAY/JUNE 2015…………………………………………………14 OCT/NOV 2015……………………………………………………17 3 Tax 3703 May / June 2014 Question 1 Estate Duty in Rose’s Estate - Assets - Flat in Cape Town 1700.000 - Motor Vehicle 250 000 - Fixed Deposit 340 000 - Accrual Claim 375 000 - Usufruct 2600 00 x 8, = = = 479 992 value shall not exceed the difference between 44,86 1) Market Value at cessation and ( 2600 000) 2) Value of Bare Dominiun when first acquired Usufruct 23,44 = 396 673 Bare Domininun 1200 000 – 396 673 803 327 - Difference 1796 673 - Shares 600 000 - Life insurance Policy 800 000 4 Total Assets 4544 992 - Liabilities - Tax Payable (366 290) - Flat left to Husband ( 1700 000) - Funeral Expenses (16 500) - Executers Remuneration (95 000) - Masters Fee (600, 00) - Net Value 2366 602 - Abartment ( 3500 000) - Dutiable Amount 0 - Estate duty 20% x Nil a) Rose husband 1700 00 / x 0 =0 b} Rose Daughter 0 C) Grandson 0 d) Estate 0 Question 3 Taxable Capital Gain / Loss of Esra Reddy’ Estate. - Primary Residence Proceeds 1950 000 Base cost ( 1200 000) Capital Gain 750 000 - Devide by 2 as Named in 750 000 ÷ 2 Community of property 375 000 Primary residence exclusion (375 000)  Flat in Cape Town Proceeds 1350 000 Base cost ( ) Capital Gain / 2 =  Motor Vehicle - Personal Use assets Not an asset - not an asset  Listed shares - Proceeds (market Value) 350 000 - Base cost (125 000) - Capital gain 225 000 / 2 = 112 500