PART B $(10$ marks, $18$ minutes$)$

Mr Mabena Morolong is the financial director of Defendify $($Pty$)$ Ltd$.$ He has been married to his wife, Mrs$.$ Senzeni Morolong, for $25$ years and they are married out of community of property.

Mr Moroleng purchased a three$-$bedroom flat in Cape Town on $1$ April $1999$ for R$225000$ that was rented out as holiday accommodation. The flat has been rented out for the past $22$ years and Mr Moroleng recently decided to sell the flat and buy a larger house in Cape Town where they could live. During $2005$ Mr and Mrs Moroleng had improvements done to the flat amounting to R$320000.$ On $1$ October $2001,$ the flat was valued at R$1200000$ and the TAB cost was R$351815.$ The flat was sold for R$2900000$ on $1$ July $2021$ to an unconnected person.

$\backslash$table$[[$REQUIRED:$,\backslash$table$[[$MARKS$],[8]]],[1.,\backslash$table$[[$Calculate the taxable capital gain for the $2022$ year of assessment for the financial$],[$director of Defendify $($Pty$)$ Ltd for the $2022$ year of assessment.$]]],[,\backslash$table$[[$Briefly discuss what the implications are if Mr Moroleng's holiday accommodation had$],[$been his primary residence.$]],2]]$