QUESTION $3(26$ marks$)$

On $1$ June $2023,$ Mrs$.$ Alice Peterson got married $($out of community of property$)$ to Mr Juan Peterson. Mr$.$ & Mrs$.$ Peterson decided to relocate to Cape Town from Johannesburg to embark on their new journey together. Mrs$.$ Alice sold$/$donated the following assets during the $2024$ year of assessment prior to their move to Cape Town.

Transaction $1$: Transfer of holiday home

Mr$.$ Juan had no assets on the date of their marriage. After getting married Mrs$.$ Alice decided to transfer her holiday home in Durban to her husband. She originally purchased the holiday home for R$2000000$ in $2019.$ The market value of the holiday home was R$2600000$ on $31$ July $2023,$ the date of transfer.

Transaction $2$: Primary Residence

Mrs$.$ Alice lived in a house in Pretoria that she bought on $1$ January $2002$ for R$9800000.$ The house was her primary residence until the day of the sale. In $2006$ she made certain improvements to the house at a cost of R$40000.$ Mrs$.$ Alice used approximately$20\%$ of the area of the house as a home office. The house was sold on $1$ August $2023$ for R$3300000.$

Transaction $3$: Vehicle

Mrs$.$ Alice sold her Volkswagen Polo to her cousin for R$120000$ on $12$ July $2023.$ She originally purchased her vehicle for R$400000$ in $2011.$

Transaction $4$: Yacht

Mrs$.$ Alice bought an $11-$metre yacht in $2015$ for R$150000.$ The yacht was mainly used for recreational purposes, but $30\%$ of the time the yacht was used for trade purposes.The yacht was sold for R$95000$ on $31$ July $2023.$

Transaction $5$: Shares

Mrs$.$ Alice is employed by Aquatics $($Pty$)$ Ltd and is not a share$-$dealer. In $2021,$ she acquired a restricted Aquatics share from the company in exchange for R$500$ cash $($market value was R$1000).$ In July $2023$ the restrictions were lifted when the shares had a R$2500$ value that was paid out to Mrs$.$ Alice in July $2023.$

Transaction $6$: Cancellation of loan

In January $2023,$ Mrs$.$ Alice lent R$100000$ to her sister, Sarah, who used this money to start up her own business. During the $2024$ year of assessment, Mrs$.$ Alice relieved her sister from the loan as her sister was unable to make any payments due to the failure of her business.

Transaction $7$: Exchange transaction of land

Mrs$.$ Alice purchased a piece of land in $2011$ for R$250000.$ On $1$ July $2023$ she entered into an exchange transaction with Michael Cross, one of her friends. Mrs$.$ Alice agreed to give Michael the land valued at R$900000.$ Michael, in exchange, agreed to give

Mrs$.$ Alice his holiday home in Cape Town, valued at R$1500000.$

REQUIRED:

Calculate the taxable capital gain or loss for the $2024$ year of assessment to be

included in the taxable income of Mrs$.$ Alice as a result of all the above transactions.

Clearly show which costs are included in the base cost.

You can ignore all VAT implications.

Round to the nearest rand.

Support your answer with references to the Income Tax Act of R$.$S$.$A