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Capital Gains Tax - Coggle Diagram
Capital Gains Tax
Exclusions
1) Primary Residence
Par45
-Disregard any capital gain/loss that is < R2m on disposal of primary residence, OR
-Disregard any capital gain from disposal if the PROCEEDS on disposal < R2m
-Apportion if > 1 person holds interest in PR
-Only one PR
-Note exclusions
Par46
-Land on which PR stands must;
•Not exceed 2 hectares
•Used mainly for domestic/private purposes
•Diposed of at the same time as that residence
-In order to get exclusion
Par47
-Sells primary residence
-Not ordinarily resident in residence throughout period on/after VD
-Then apportion the cap gain/loss for periods they did reside in house
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Par49
-Exclusion only applies to part of residence that is used for domestic purposes
-Therefore apportion gain/loss for domestic use
2) Personal Use Assets
Par53(1)
-Disregard cap gain/loss on disposal of PUA
Par53(2)
-PUA is one used mainly (>50%) for private/domestic purposes
Par53(3)
-What does not constitute a PUA
-Note Par15 Loss limitations
3) Retirement Benefits
Par54
-Disregard gain/loss iro disposal that results in the person having;
•A lump sum benefit, or
•Lump sum benefit from a foreign fund
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Exclusions
5) Disposal of Small Business Assets
Par57
-NP must disregard capital gain (ltd. to R1.8m in lifetime) on par57(2)
-Must realise it within 24mo of first disposal
6) Compensation for Personal Injury, Illness or Defamation
Par59
7) Gambling, Games & Compensation
Par60
-Disregard gains/losses
-BUT gains can't be disregarded if;
•derived by Co's, CC's or Trusts
•foreign gambling
•illegal gambling
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Identical Assets
Base Cost of Identical Assets
Par32
-Specific Identification= Par 26&27
-FIFO= Par26&27
-Weighted Average= MV
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