STUDENTS SUCCESS
Revision Examination Tests
“Come all for this greatness”
...100% Correct Ans...
LML4806 EXAM PACK 2024-2025 - DISTINCTION GUARANTEED 100%
Capital Gains Tax (CGT)
ans:> Tax on profit from asset disposal.
Asset
ans:> Property or right of any nature.
Proceeds
ans:> Total amount received from asset disposal.
Disposal
ans:> Event of transferring ownership of an asset.
Base Cost
ans:> Cost of acquiring or creating an asset.
Qualified Expenditure
ans:> Costs that can be added to base cost.
Holding Costs
ans:> Expenses incurred while maintaining an asset.
Eighth Schedule
ans:> Legal framework governing CGT in South Africa.
Taxable Capital Gain
ans:> Profit subject to taxation after asset sale.
Mr Thalitha
ans:> Tax resident involved in CGT scenario.
Construction Costs
,ans:> Expenses incurred for building improvements.
Sale Price
ans:> Amount received from selling an asset.
Emigration
ans:> Moving residence to another country.
Lease-with-option-to-buy
ans:> Rental agreement with purchase option.
Tax Resident
ans:> Individual subject to tax laws of a country.
Tax Year
ans:> Period for which tax is calculated.
R750,000
ans:> Initial purchase price of the Midrand property.
R3,500,000
ans:> Sale price of the Midrand house.
R450,000
ans:> Cost of constructing the house.
R100,000
ans:> Cost of adding an additional bedroom.
R50,000
ans:> Cost of repairing the leaking roof.
Taxable Year
ans:> 2020/2021 year for CGT assessment.
Jeffreys Bay
ans:> New location for Mr and Mrs Thalitha.
Painting
ans:> Asset given as a birthday gift.
R300,000
ans:> Purchase price of the painting.
, R600,000
ans:> Current value of the painting.
Legal Advice
ans:> Guidance on legal implications of actions.
Tax Consequences
ans:> Financial implications of tax laws.
Capital Gain
ans:> Profit from selling an asset above base cost.
Capital Loss
ans:> Loss incurred when selling an asset below base cost.
Aggregate Capital Gain
ans:> Total capital gain after exclusions and deductions.
Primary Residence
ans:> Main home where a person resides primarily.
Annual Exclusion
ans:> R40,000 deduction from capital gains for individuals.
Net Capital Gain
ans:> Final taxable amount after exclusions and losses.
Roll-over Relief
ans:> Tax relief for asset transfers between spouses.
Deemed Disposal
ans:> Tax event triggered by changing residency.
Market Value
ans:> Current worth of an asset at a specific time.
Immovable Property
ans:> Land and structures permanently attached to it.
Movable Property
ans:> Assets that can be moved, like vehicles or art.
Revision Examination Tests
“Come all for this greatness”
...100% Correct Ans...
LML4806 EXAM PACK 2024-2025 - DISTINCTION GUARANTEED 100%
Capital Gains Tax (CGT)
ans:> Tax on profit from asset disposal.
Asset
ans:> Property or right of any nature.
Proceeds
ans:> Total amount received from asset disposal.
Disposal
ans:> Event of transferring ownership of an asset.
Base Cost
ans:> Cost of acquiring or creating an asset.
Qualified Expenditure
ans:> Costs that can be added to base cost.
Holding Costs
ans:> Expenses incurred while maintaining an asset.
Eighth Schedule
ans:> Legal framework governing CGT in South Africa.
Taxable Capital Gain
ans:> Profit subject to taxation after asset sale.
Mr Thalitha
ans:> Tax resident involved in CGT scenario.
Construction Costs
,ans:> Expenses incurred for building improvements.
Sale Price
ans:> Amount received from selling an asset.
Emigration
ans:> Moving residence to another country.
Lease-with-option-to-buy
ans:> Rental agreement with purchase option.
Tax Resident
ans:> Individual subject to tax laws of a country.
Tax Year
ans:> Period for which tax is calculated.
R750,000
ans:> Initial purchase price of the Midrand property.
R3,500,000
ans:> Sale price of the Midrand house.
R450,000
ans:> Cost of constructing the house.
R100,000
ans:> Cost of adding an additional bedroom.
R50,000
ans:> Cost of repairing the leaking roof.
Taxable Year
ans:> 2020/2021 year for CGT assessment.
Jeffreys Bay
ans:> New location for Mr and Mrs Thalitha.
Painting
ans:> Asset given as a birthday gift.
R300,000
ans:> Purchase price of the painting.
, R600,000
ans:> Current value of the painting.
Legal Advice
ans:> Guidance on legal implications of actions.
Tax Consequences
ans:> Financial implications of tax laws.
Capital Gain
ans:> Profit from selling an asset above base cost.
Capital Loss
ans:> Loss incurred when selling an asset below base cost.
Aggregate Capital Gain
ans:> Total capital gain after exclusions and deductions.
Primary Residence
ans:> Main home where a person resides primarily.
Annual Exclusion
ans:> R40,000 deduction from capital gains for individuals.
Net Capital Gain
ans:> Final taxable amount after exclusions and losses.
Roll-over Relief
ans:> Tax relief for asset transfers between spouses.
Deemed Disposal
ans:> Tax event triggered by changing residency.
Market Value
ans:> Current worth of an asset at a specific time.
Immovable Property
ans:> Land and structures permanently attached to it.
Movable Property
ans:> Assets that can be moved, like vehicles or art.
