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Flamingo Tours (Pty) Ltd sold Plot 172 Maun in June 2021 for P750,000. The land originally cost
P28,000 in June 2004, and a building was constructed on the land in March 2009 costing
P262,094. In October 2016, repairs costing P165,386 were carried out.How much is Flamingo Tours (Pty) Ltd’s gross taxable gain in respect of this disposal?
Do you happen to have the answer for the above question? Alternatively is any more information given about the repairs?I tend to think in the absence of further information that the gain would be 750000-(28000+262094+165386)=750000-455480=294520
I tend to think given the scale of the “repairs” that they are more likely to be enhancement expenditure. Also the fact they occur relatively close to sale also suggests they should be treated this way, notwithstanding any other information given. Hope this helps.
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