Question: John Snow ( John ) ( 4 5 years old ) was married in community of property to Karen Snow ( Karen ) ( 3

John Snow (John)(45 years old) was married in community of property to Karen Snow (Karen)(30 years old) for 10 years until the couple divorced on 1 November 2024. Both are South African residents. Property Prior to the divorce, the couple lived in their home in Johannesburg, which they bought on 2 January 2014 for R1400000. To cover this purchase price, they took out a bond with First Regional Bank (FRB), for which they paid R15400 monthly. Of this, 50% went towards capital, and the other 50% went towards interest. The bond registration fee was R10500. The monthly rates and taxes for the house are R4000, covering electricity, water, and waste disposal as well. Johns employment John is employed as a business development director for Serve IT (Pty) Ltd an IT consulting company that provides software as a service and his work requires him to identify potential clients, establish relationships, prepare proposals, and meet with prospective clients. His monthly remuneration package for the current year of assessment was structured as follows: R Salary 100000 Cell phone allowance 5000 Travel allowance (Note 1)10000 Employer contribution to medical aid (Note 2)4000 Note 1: John kept an accurate logbook and travelled a total of 50000km for the 2025 year of assessment, 10000 of which were for business. He drove a 2015 Land Rover Freelander, which he acquired for R350000(including VAT). He spent R78000 on fuel during the year, the car service cost was R12000. He kept records of all expenses related to the car. Note 2: John is the main member of BeWell Medical Aid Scheme, with Karen being the sole dependent. He paid R3000 per month towards the medical aid throughout the year, even after the divorce Karen was still listed as a dependent on the medical aid.
Required Calculate the capital gain or loss resulting from the sale of the property for each spouse. Provide reasons for any amounts that have a Rnil impact.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!