EXAMPLE – PRIMARY RESIDENCE EXCLUSION
An individual’s primary residence was valued at R1 million on 1 October 2001. The residence was sold after the valuation date for R3,5 million.
|
|
R |
| Proceeds |
|
3 500 000 |
| Valuation date value |
|
1 000 000 |
| Valuation fee |
|
5 000 |
| Swimming pool added after valuation date |
|
45 000 |
|
R |
R |
| Proceeds |
|
3 500 000 |
Less: Base cost
|
|
|
| Valuation date value |
(1 000 000) |
|
| Valuation fee |
(5 000) |
|
| Improvements |
(45 000) |
(1 050 000) |
| Gain |
2 450 000 |
|
| Less: Primary residence exclusion |
(2 000 000) |
|
| Capital gain |
|
450 000 |