Stacey Lang, 48 years old, has lived in George for the past 30 years. Stacey was relocated
Question:
Stacey Lang, 48 years old, has lived in George for the past 30 years. Stacey was relocated in the current year to Johannesburg after accepting an executive director position at ABC’s Head Office. Stacey started in her new position on 1 August 2021. Stacey sold or donated the following assets on 28 July 2021, before moving to Johannesburg:
Primary residence in George
Stacey bought a house in George on 1 April 1991 for R50 000. Stacey and her spouse (to whom she is married out of community of property) lived in the house from the day that they bought it until the day of sale. Stacey spent R400 000 improving the house in December 1995. The house was valued at R1 500 000 on 1 October 2001 and was sold for R3 800 000. The time- apportionment base cost of the asset amounts to R1 770 000.
House in Ballito
Stacey bought a house in Ballito on 1 March 2000 for R50 000. She and her family used this house as a holiday home and let it out to holidaymakers from time to time. It was valued on 1 October 2001 at R500 000 and was sold for R750 750. Stacey elected to use the market value as the valuation date value, because it was more than the time apportionment value of R426 500.
Yacht
Stacey owned a yacht, which she bought during 2007. The yacht was used mainly for recreational purposes, but 25% of the time the yacht was used for trade purposes. The eleven-metre yacht was sold at a capital loss of R74 800.
REQUIRED
Calculate Stacey’s taxable capital gain or loss for the 2022 year of assessment. Stacey is not registered for VAT and all the amounts are inclusive of VAT (where applicable).
