On 1 December 2016 Dheshnie Singh, a resident of the republic, purchased a primary residence for R2 300 000. She used the granny flat portion of her primary residence as her consulting rooms. (In other words, she traded from a portion of her primary residence. The granny flat portion of this primary residence comprises 20% of the total primary residence. She lived in this primary residence, and practiced from its granny flat, for the 14 month period from 1 December 2016 until 31 January 2018. On 1 February 2018 she sold her primary residence for R4 000 000. Required Determine the capital gains tax consequences that result from the purchase and sale by Dheshnie Singh of her primary residence.
On 1 December 2016 Dheshnie Singh, a resident of the republic, purchased a primary residence for R2 300 000. She used the granny flat portion of her primary residence as her consulting rooms. (In other words, she traded from a portion of her primary residence. The granny flat portion of this primary residence comprises 20% of the total primary residence. She lived in this primary residence, and practiced from its granny flat, for the 14 month period from 1 December 2016 until 31 January 2018. On 1 February 2018 she sold her primary residence for R4 000 000. Required Determine the capital gains tax consequences that result from the purchase and sale by Dheshnie Singh of her primary residence.
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 88P
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On 1 December 2016 Dheshnie Singh, a resident of the republic, purchased a primary residence for R2 300 000. She used the granny flat portion of her primary residence as her consulting rooms. (In other words, she traded from a portion of her primary residence. The granny flat portion of this primary residence comprises 20% of the total primary residence. She lived in this primary residence, and practiced from its granny flat, for the 14 month period from 1 December 2016 until 31 January 2018. On 1 February 2018 she sold her primary residence for R4 000 000.
Required Determine the
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