LML4804 LATEST 2025 EXAM PACK: CAPITAL GAINS TAX ANALYSIS WITH QUESTIONS AND
CORRECT VERIFIED ANSWERS GRADED A+
Capital Gains Tax (CGT) - (ANSWER)Tax on profit from asset disposal.
Asset - (ANSWER)Property or right of any nature.
Proceeds - (ANSWER)Total amount received from asset disposal.
Disposal - (ANSWER)Event of transferring ownership of an asset.
Base Cost - (ANSWER)Cost of acquiring or creating an asset.
Qualified Expenditure - (ANSWER)Costs that can be added to base cost.
Holding Costs - (ANSWER)Expenses incurred while maintaining an asset.
Eighth Schedule - (ANSWER)Legal framework governing CGT in South Africa.
Taxable Capital Gain - (ANSWER)Profit subject to taxation after asset sale.
Mr Thalitha - (ANSWER)Tax resident involved in CGT scenario.
Construction Costs - (ANSWER)Expenses incurred for building improvements.
Sale Price - (ANSWER)Amount received from selling an asset.
Emigration - (ANSWER)Moving residence to another country.
1
, LML4804 LATEST 2025 EXAM PACK: CAPITAL GAINS TAX ANALYSIS WITH QUESTIONS AND
CORRECT VERIFIED ANSWERS GRADED A+
Lease-with-option-to-buy - (ANSWER)Rental agreement with purchase option.
Tax Resident - (ANSWER)Individual subject to tax laws of a country.
Tax Year - (ANSWER)Period for which tax is calculated.
R750,000 - (ANSWER)Initial purchase price of the Midrand property.
R3,500,000 - (ANSWER)Sale price of the Midrand house.
R450,000 - (ANSWER)Cost of constructing the house.
R100,000 - (ANSWER)Cost of adding an additional bedroom.
R50,000 - (ANSWER)Cost of repairing the leaking roof.
Taxable Year - (ANSWER)2020/2021 year for CGT assessment.
Jeffreys Bay - (ANSWER)New location for Mr and Mrs Thalitha.
Painting - (ANSWER)Asset given as a birthday gift.
R300,000 - (ANSWER)Purchase price of the painting.
R600,000 - (ANSWER)Current value of the painting.
2
, LML4804 LATEST 2025 EXAM PACK: CAPITAL GAINS TAX ANALYSIS WITH QUESTIONS AND
CORRECT VERIFIED ANSWERS GRADED A+
Legal Advice - (ANSWER)Guidance on legal implications of actions.
Tax Consequences - (ANSWER)Financial implications of tax laws.
Capital Gain - (ANSWER)Profit from selling an asset above base cost.
Capital Loss - (ANSWER)Loss incurred when selling an asset below base cost.
Aggregate Capital Gain - (ANSWER)Total capital gain after exclusions and deductions.
Primary Residence - (ANSWER)Main home where a person resides primarily.
Annual Exclusion - (ANSWER)R40,000 deduction from capital gains for individuals.
Net Capital Gain - (ANSWER)Final taxable amount after exclusions and losses.
Roll-over Relief - (ANSWER)Tax relief for asset transfers between spouses.
Deemed Disposal - (ANSWER)Tax event triggered by changing residency.
Market Value - (ANSWER)Current worth of an asset at a specific time.
Immovable Property - (ANSWER)Land and structures permanently attached to it.
Movable Property - (ANSWER)Assets that can be moved, like vehicles or art.
3
CORRECT VERIFIED ANSWERS GRADED A+
Capital Gains Tax (CGT) - (ANSWER)Tax on profit from asset disposal.
Asset - (ANSWER)Property or right of any nature.
Proceeds - (ANSWER)Total amount received from asset disposal.
Disposal - (ANSWER)Event of transferring ownership of an asset.
Base Cost - (ANSWER)Cost of acquiring or creating an asset.
Qualified Expenditure - (ANSWER)Costs that can be added to base cost.
Holding Costs - (ANSWER)Expenses incurred while maintaining an asset.
Eighth Schedule - (ANSWER)Legal framework governing CGT in South Africa.
Taxable Capital Gain - (ANSWER)Profit subject to taxation after asset sale.
Mr Thalitha - (ANSWER)Tax resident involved in CGT scenario.
Construction Costs - (ANSWER)Expenses incurred for building improvements.
Sale Price - (ANSWER)Amount received from selling an asset.
Emigration - (ANSWER)Moving residence to another country.
1
, LML4804 LATEST 2025 EXAM PACK: CAPITAL GAINS TAX ANALYSIS WITH QUESTIONS AND
CORRECT VERIFIED ANSWERS GRADED A+
Lease-with-option-to-buy - (ANSWER)Rental agreement with purchase option.
Tax Resident - (ANSWER)Individual subject to tax laws of a country.
Tax Year - (ANSWER)Period for which tax is calculated.
R750,000 - (ANSWER)Initial purchase price of the Midrand property.
R3,500,000 - (ANSWER)Sale price of the Midrand house.
R450,000 - (ANSWER)Cost of constructing the house.
R100,000 - (ANSWER)Cost of adding an additional bedroom.
R50,000 - (ANSWER)Cost of repairing the leaking roof.
Taxable Year - (ANSWER)2020/2021 year for CGT assessment.
Jeffreys Bay - (ANSWER)New location for Mr and Mrs Thalitha.
Painting - (ANSWER)Asset given as a birthday gift.
R300,000 - (ANSWER)Purchase price of the painting.
R600,000 - (ANSWER)Current value of the painting.
2
, LML4804 LATEST 2025 EXAM PACK: CAPITAL GAINS TAX ANALYSIS WITH QUESTIONS AND
CORRECT VERIFIED ANSWERS GRADED A+
Legal Advice - (ANSWER)Guidance on legal implications of actions.
Tax Consequences - (ANSWER)Financial implications of tax laws.
Capital Gain - (ANSWER)Profit from selling an asset above base cost.
Capital Loss - (ANSWER)Loss incurred when selling an asset below base cost.
Aggregate Capital Gain - (ANSWER)Total capital gain after exclusions and deductions.
Primary Residence - (ANSWER)Main home where a person resides primarily.
Annual Exclusion - (ANSWER)R40,000 deduction from capital gains for individuals.
Net Capital Gain - (ANSWER)Final taxable amount after exclusions and losses.
Roll-over Relief - (ANSWER)Tax relief for asset transfers between spouses.
Deemed Disposal - (ANSWER)Tax event triggered by changing residency.
Market Value - (ANSWER)Current worth of an asset at a specific time.
Immovable Property - (ANSWER)Land and structures permanently attached to it.
Movable Property - (ANSWER)Assets that can be moved, like vehicles or art.
3
