Duties Transfer

Anika Pillay, 45 years of age, runs her events management business as a sole proprietor. The following information is relevant for tax purposes for the year ended February 2019:
1. Her business, “Balloon Events”, had the following income and expenses during the 2019 tax year.

  •  Fee income     R 568 950
  •  Client entertainment     R 42 540
  •  Cell phone     R 48 000
  •  Computer expense    R 9 850
  •  Assistant’s salary    R 72 000
  •  Motor vehicle expenses (excluding wear and tear)    R 16 450
  •  School fees for her daughter    R 28 0002. Anika purchased her motor vehicle on 4 May 2016 for an amount of R 159 500 including 15% VAT. She kept a log book during the tax year, according to which she travelled a total of 22 370km, 7 015km was for private purposes. SARS accepts a 5 year write off period on motor vehicles.
    3. Anika purchased office furniture costing R 14 500 on 30 June 2016. SARS accepts a write off period of 6 years for furniture.
    4. Anika uses a study in her house as her office. Her office is 15m2 and her entire house is 175m2. She has used this area exclusively as her office since 1 March 2015. The following expenses relate to the entire house for the 2019 tax year:
  •  Electricity     R 10 452
  •  Rates     R 14 800
  •  Bond interest     R 63 150
  •  Security services     R 4 5005. Anika sold her house on 30 June 2018 for an amount of R 2 265 000. She had originally purchased the house for R 1 200 000 on 1 July 2006. In addition, she incurred the following expenses during her ownership:
  •  Transfer duties on purchase     R 60 000
  •  Costs of adding a scullery to the kitchen     R 54 500
  •  Agent’s fees on the sale     R 90 600
  •  Bond repayments         R 299 000
  •  Legal fees on the sale R 6 9856. Anika donated shares to her sister on 15 July 2018. The shares had a market value of R 96 850. She had purchased these three years earlier at a cost of R 63 500. She paid donations tax of R 19 370 on this donation.
    7. She sold three Krugerrands on 1 November 2018 for R 15 600 each that she had inherited from her grandmother three years earlier. The market value at the date of inheritance was R 16 000 each.
    8. She had an assessed capital loss of R 6 500 carried forward from the previous year.
    9. Anika based her 2 nd provisional tax payment on the basic amount, and during the 2019 tax year made the following provisional tax payments:
    31 August 2018     R 14 750
    28 February 2019     R14 750
    Required:
    Calculate Anika Pillay’s tax owing for the year ended 28 February 2019.

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