Ntosh sold her house for R3 800 000. She bought it five years ago, when she...

 

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Ntosh sold her house for R3 800 000. She bought it five years ago, when she inherited some money from her grandfather. The purchase price five years ago was R850 000 and she spent R150 000 on improvements to the house. She paid R50 000 for legal fees and the agent's commission, when she sold the house. Complete the following table, by calculating Ntosh's personal tax liability. Apply the 2020/2021 annual income tax table provided as an annexure. List all items, and show all steps and calculations: Ntosh's tax liability R. Gross income Less: Exemptions Income Less: Deductions Taxable income Apply tax per scale Less: Medical tax credits Less: Rebates Tax payable Ntosh sold her house for R3 800 000. She bought it five years ago, when she inherited some money from her grandfather. The purchase price five years ago was R850 000 and she spent R150 000 on improvements to the house. She paid R50 000 for legal fees and the agent's commission, when she sold the house. Complete the following table, by calculating Ntosh's personal tax liability. Apply the 2020/2021 annual income tax table provided as an annexure. List all items, and show all steps and calculations: Ntosh's tax liability R. Gross income Less: Exemptions Income Less: Deductions Taxable income Apply tax per scale Less: Medical tax credits Less: Rebates Tax payable

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Computation of tax liability of Mr Norton for the year ended Gross total income 3800000 exempti... View the full answer