Scribd Logo
Upload

Welcome to Scribd!

  • 81 views

    CGT Steps: Did We Claim Allowances?

    Uploaded by

    Simphiwe Nkosi
    The document outlines 6 steps to guide the capital gains tax (CGT) calculation on the disposal of a depreciable asset: 1) Determine if the asset is depreciable and if allowances were claimed 2) Calculate the tax value on the date of disposal 3) Determine the recoupment/scrapping loss/capital loss on disposal 4) Check if the asset was acquired before the valuation date and determine if the market value and time-apportionment base are known 5) Check if the sales proceeds exceed total costs and apply paragraph 26 if yes 6) If paragraph 26 applies, check if the market value and time-apportionment base are known and apply the 20% rule

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    CGT Steps: Did We Claim Allowances?

    Uploaded by

    Simphiwe Nkosi
    81 views2 pages
    The document outlines 6 steps to guide the capital gains tax (CGT) calculation on the disposal of a depreciable asset: 1) Determine if the asset is depreciable and if allowances were claimed 2) Calculate the tax value on the date of disposal 3) Determine the recoupment/scrapping loss/capital loss on disposal 4) Check if the asset was acquired before the valuation date and determine if the market value and time-apportionment base are known 5) Check if the sales proceeds exceed total costs and apply paragraph 26 if yes 6) If paragraph 26 applies, check if the market value and time-apportionment base are known and apply the 20% rule

    Original Description:

    Capital Gains Tax manual

    Original Title

    Capital Gains Tax

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document outlines 6 steps to guide the capital gains tax (CGT) calculation on the disposal of a depreciable asset: 1) Determine if the asset is depreciable and if allowances were claimed 2) Calculate the tax value on the date of disposal 3) Determine the recoupment/scrapping loss/capital loss on disposal 4) Check if the asset was acquired before the valuation date and determine if the market value and time-apportionment base are known 5) Check if the sales proceeds exceed total costs and apply paragraph 26 if yes 6) If paragraph 26 applies, check if the market value and time-apportionment base are known and apply the 20% rule

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    81 views2 pages

    CGT Steps: Did We Claim Allowances?

    Uploaded by

    Simphiwe Nkosi
    The document outlines 6 steps to guide the capital gains tax (CGT) calculation on the disposal of a depreciable asset: 1) Determine if the asset is depreciable and if allowances were claimed 2) Calculate the tax value on the date of disposal 3) Determine the recoupment/scrapping loss/capital loss on disposal 4) Check if the asset was acquired before the valuation date and determine if the market value and time-apportionment base are known 5) Check if the sales proceeds exceed total costs and apply paragraph 26 if yes 6) If paragraph 26 applies, check if the market value and time-apportionment base are known and apply the 20% rule

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    CGT STEPS

    CGT questions/steps to guide you - TAX 2601


    1 Depreciable asset?
    Did we claim allowances?

    2 Yes Determine tax value on date of disposal

    BASE COST = TAX VALUE

    3 Determine the recoupment/scrapping loss/capital loss on disposal

    PROCEEDS = SP LESS POST 1/10/2001 BASE COST

    A If Q1 was Negative:
    No adjustment to proceeds (Proceeds = Selling price)
    No recoupment/scrapping loss
    Tax value = Cost
    Base cost = Original cost

    4 Pre-valuation date asset?


    YES Do we have MV?
    TAB?
    Calculate 20% x (Proceeds - Post Valuation date base cost)

    NEED ADJUSTED PROCEEDS


    NEED POST VALUATION DATE BASE COST
    5 SP > Total costs? YES Para 26 STATE THIS!!

    6 Para 26 applies: Was the following determined MV?


    TAB?
    Determine 20% rule
    IF YES TO ALL - USE GREATER (PARA 26(1))

    IF actual costs was not availble use greater of


    (cannot get TAB) MV
    (USE PARA 26(2)) 20% rule
    .
    MV elected VDV?
    No - apply 26(1) or (2)
    Yes - apply 26 (3)

    Is proceeds not greater than MV?


    Yes - VDV = Proceeds less post valuation
    date expenditure

    No - Use MV

    You might also like