Unit 6 - Deceased Estate

Question 1

What is the YoA for the deceased estate?

Answer 1

Date after date of death - Date on which estate is wound up (the winding up of a deceased estate can stretch over more than one YoA.

• Thus might have to complete multiple
  returns

Question 2

Who is the representative TP?

Answer 2

The executor of the estate - appointed in accordance with the will and testimont

Question 3

Deceased Estate’s tax calculation?

Answer 3

• Interest exemption is still applicable -
  Apportion interest exemption s10(1)(i)
  
  • always according to 365 days
• The tax rate = tax tables for individuals
• Rebates - N/A, deceased estate is NOT
  natural person

Question 4

What income is taxable in the hands of the deceased estate?

Answer 4

Income derived from asset after death but before estate is wound up

Question 5

Deceased estate

CGT - what is the deemed disposal of capital assets going to heirs?

Answer 5

Disposal (Proceeds) = MV @ DOD

Base cost = MV @ DOD

= No CGT

Question 6

Deceased estate

CGT - what is the deemed disposal of capital asset being sold to 3rd party?

Answer 6

Disposal (Proceeds) = SP

Base cost = MV @ DOD

Question 7

Deceased estate

CGT - what is the deemed disposal of capital assets going to surviving spouse?

Answer 7

Disposal (Proceeds) = Base cost

Base cost = Base cost

= No CGT

Question 8

Deceased estate

CGT - What is the annual exclusion for a deceased estate?

Answer 8

R40 000

Question 9

Deceased estate

CGT - What is the inclusion rate?

Answer 9

40%

Question 10

Deceased estate

CGT - What capital gains/losses are disregarded (exempt)?

Answer 10

• PBO/Government par 62

Always mention it!!!