QUESTION $4(25$ Marks$)$

Steve Dlamini, $62$ years old, a resident of South Africa, disposed of the following items in the current year of

assessment:

$$ Steven sold his residential property on the $31$ December $2023$ for R$4000000.$ He did not use the

property as his primary residence as it was rented out to a tenant. He purchased the property for R$2800000$

on $1$ January $2019$ and spent R$800000$ on renovations. Other costs incurred were:

$$ Rates and taxes $-$ R$12500$

$$ Borrowing costs $-$ R$65000$

$$ Transfer costs $-$ R$100000$

$$ He sold his dental practise for R$2550000$ on $1$ October $2023$ as a going concern due to his ill health.

The initial purchase price was R$650000.$ The practice qualifies as a small business in terms of paragraph

$57.$

$$ Steven acquired shares for R$55000$ as long$-$term investment in $2014$ and decided to dispose of the

shares for R$95000$ in the current year.

$$ He sold his Mercedes Benz R$600000,$ he purchased the vehicle for personal use for an amount of R$500$

$000.$

$$ He sold his Persian carpets for R$22500,$ it was initially purchased for R$20000$ in $2021.$

$$ Steven received proceeds from a long$-$term insurance policy amounting to R$125000$ and winnings from

a casino amounting to R$100000.$

$$ Steven has a carried forward assessed capital loss of R$85000$ from the previous tax year.

Required:

Calculate the taxable gain to be included in Steve Dlamini$$s taxable income for the year ended $29$ February

$2024.$

$(25$ Marks$)$