QUESTION FIVE $[10]$

On $1$ November $2023,$ Jennifer Doe sold the primary residence that she and Jeff had lived in for the amount of R$3750000.$ Jennifer was the sole owner of the property and had purchased it on $1$ October $2015$ for an amount of R$1900000.$ Jennifer improved the property at a cost of R$300000.$

His employer had sent Jeff overseas and Jennifer and the children went with him. They were overseas from $1$ December $2018$ to $1$ January $2023.$ Jennifer had remained in the house $($after their return and Jeff$$s subsequent death$)$ until the date of sale.

Whilst Jeff, Jennifer and the children were overseas, they remained mainly resident in South Africa for tax purposes. They did during their absence contemplate emigrating to the overseas country. In this regard, they put the house on the market for $8$ months, starting

$1$ April $209.$ Eventually they decided that they would ultimately like to return to South Africa and took the house off the market $($ie$.$ Did not sell$).$

Throughout their time overseas, the house was rented out. No deductions were claimed against the rental income.

Required:

Calculate and discuss the capital gains effect $($after any specific exclusions$)$ for Jennifer on the sale of the house.

Assume that current tax rates apply for the foreseeable future