Capital Gains Tax

What is the annual exclusion for individuals when calculating capital gains tax?

• R20 000

• R40 000

• R50 000

• R100 000

Which of the following assets is exempt from CGT?

• Shares held for speculative purposes

• Property held for rental income

• Personal-use assets such as jewellery

• Manufacturing Equipment

Which section of the Income Tax Act deals with deemed disposals on the death of a taxpayer?

• Par 53

• S7C

• Par 12

• S9HA

In terms of rollover relief, which of the following situations would qualify for par 65 of the 8th Schedule

• A taxpayer's equipment is stolen and they buy a vehicle for the owner with the proceeds

• A company disposes of a commercial building but replaces it with a similar one within 12 months

• A taxpayer sells their vacation home and buys shares with the proceeds

• A company disposes of destroyed manufacturing equipment and buys a manufacturing plant with the proceeds.

Which one of the following qualifies for the primary residence exclusion?

• A holiday home in Cape Town

• A home used exclusively as an office

• A property where the owner resides permanently

• A home rented out for 3 years before being sold

Donations tax paid on a gifted asset must be added to the base cost of the donated asset when calculating CGT.

• TRUE

• FALSE

Assets owned by small businesses qualify for an R1.8 million CGT exclusion under certain conditions

• TRUE

• FALSE

Personal-use assets, such as a car or furniture, are exempt from CGT unless used mainly for business purposes.

• TRUE

• FALSE

A deceased person is deemed to have disposed of all their assets at market value, except for those transferred to a surviving spouse.

• TRUE

• FALSE

Paragraph 15 limitation of losses applies to personal-use assets, e.g boat not exceeding 10m in length.

• TRUE

• FALSE